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S 2768Rights & Warranties

Commercial Law - General Regulatory Provisions - Unfair Sales Practices

Businesses must allow online cancellation for online subscriptions and clearly disclose automatic renewal terms and price changes.

Held for study
Population
Affected
72
Email Legislator
Introduced Mar 4, 2026Committee Senate Commerce

Plain-English Summary

This legislation mandates that any business offering automatic renewal or continuous service subscriptions must clearly disclose the terms and cancellation policy to the consumer. Crucially, if a consumer accepts an offer online, the business must allow them to cancel the service online without requiring further steps. It also requires clear notice regarding price changes after free trials. Violations of these requirements are classified as deceptive trade practices, subjecting the business to state enforcement and allowing consumers the right to sue for damages.

For younger readers

Imagine you sign up for a game or app on a computer. Sometimes, companies keep taking money from you every month even if you want to quit, and they make it very hard to stop. This new rule says that if you signed up on the computer, the company must let you quit on the computer, too. They cannot make you call them or write a letter just to stop paying. They also have to be honest about exactly how much it will cost.

Who & Where It Applies

Impacted groups
ConsumersOnline RetailersSubscription ServicesGym MembershipsStreaming Services
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Protects consumers, particularly low-income individuals, from predatory "zombie" subscriptions that drain financial resources through intentionally difficult cancellation processes.
  • Empowers individuals against corporations by mandating transparency and ease of access, leveling the playing field between the buyer and the seller.
  • Strengthens the social safety net by classifying violations as deceptive trade practices, granting citizens a private right of action to hold businesses accountable in court.
  • Does not outright ban automatic renewals, leaving room for corporations to continue using the underlying model of passive income extraction.
  • Relies heavily on the consumer to notice the violation and potentially initiate legal action, which requires time and resources that poor and disadvantaged individuals may not have.
  • May not go far enough to regulate third-party billing services or app stores, potentially leaving a loophole for tech giants to exploit.
For Conservatives
  • Promotes a transparent free market by ensuring that contracts are entered into with full knowledge, preventing fraud and deception in commerce.
  • Protects honest businesses from unfair competition by punishing bad actors who use deceptive tactics to retain customers against their will.
  • Establishes clear definitions for "clear and conspicuous" terms, providing businesses with specific standards to follow to avoid ambiguity and litigation.
  • Imposes additional government regulations on private businesses, dictating how they must structure their internal operations and website designs.
  • Interferes with the freedom of contract by mandating specific cancellation methods rather than allowing the business and consumer to agree on their own terms.
  • Increases the liability of businesses by allowing private lawsuits for technical violations, potentially leading to frivolous litigation that harms economic growth.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 37 additions

SECTION 1. Chapter 6-13 of the General Laws entitled "Unfair Sales Practices" is hereby amended by adding thereto the following section: 6-13-14.1. Unlawful retention policy – canceling of subscriptions, memberships.

(a) Any business entity that makes automatic renewal offers or continuous service offers for goods, services, memberships or subscriptions to consumers shall:

(1) Provide an acknowledgment to a consumer disclosing the automatic renewal offer terms or continuous service offer terms, the cancellation policy and information regarding how to cancel the goods or services in a manner that is capable of being retained by the consumer. If the automatic renewal offer or continuous service offer includes a free gift or trial, the acknowledgment shall include a clear and conspicuous explanation of the price that will be charged after the trial ends or the manner in which the pricing will change upon conclusion of the trial, disclose how to cancel the goods or services, provide the deadline by which the consumer must act to stop or prevent charges and allow the consumer to cancel the goods or services before the consumer pays for the goods or services.

(2) Disclose the automatic renewal offer or continuous service offer to a consumer in a contract, or a contract offer in a clear and conspicuous manner.

(3) Allow a consumer who accepts the automatic renewal offer or a continuous service offer online to terminate the acceptance of the goods or services online with no further action required by the consumer.

(4) In the case of a material change in the terms of the automatic renewal offer or continuous service offer, provide a consumer with clear and conspicuous notice of the material change and information regarding how to cancel the goods or services in a manner that is capable of being retained by the consumer.

(5) Not intentionally misrepresent the terms of the automatic renewal offer or continuous service offer or any material fact related to the underlying good or service.

(b) A business entity shall allow a consumer who accepted an automatic renewal or continuous service offer to terminate the automatic renewal offer or continuous service offer under this clause by electronic mail formatted and provided by the business entity without additional information, or through a link to a website or other online service the consumer can use to cancel.

(c) A violation of this section shall constitute a deceptive trade practice in violation of chapter 13.1 of title 6 and shall be subject to the enforcement provisions of § 6-13.1-5 and private rights of action pursuant to the provisions of § 6-13.1-5.2.

(d) As used in this section:

(1) "Clear and conspicuous" means, in reference to text, type larger than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks, in a manner that clearly calls attention to the language.

(2) "Consumer" means an individual who obtains or has obtained goods or services, memberships or subscriptions primarily for personal, family or household purposes.

SECTION 2. This act shall take effect upon passage.