New changes to Connecticut's existing "click to cancel" statute went into effect this month.
As of July 1, covered businesses now are required to provide annual renewal reminders, expand consumers' cancellation options and more.
Here are the changes that apply to covered businesses:
- Send consumers an annual reminder if their contract automatically renews.
- Include information about the goods or services covered by the renewal, the frequency and cost of the renewal and instructions on how to cancel in reminders.
- Provide an easy way for consumers to cancel.
- Businesses no longer can require consumers to cancel an automatically renewing contract in person or by mail.
- If the business has an online platform, it must provide a clear online cancellation option or a dedicated email address consumers can use to cancel.
- If the business does not have an online platform, it must provide a phone number that consumers can call to cancel.
- Promptly process cancellation requests without obstructing or delaying consumers.
- If a consumer leaves a voicemail requesting cancellation and provides sufficient information to process the request, the business must cancel the auto-renewal within one business day.
The law applies to businesses that offer consumer contracts for goods or services that automatically are renewed unless the consumer takes action to cancel, according to a news release from the state Office of the Attorney General.
Certain businesses are exempt, including public utilities and other entities regulated by the Public Utilities Regulatory Authority, the Federal Communications Commission, the Federal Energy Regulatory Commission, the Connecticut Insurance Department, banks and credit unions, and certain national or global audiovisual content providers.
Businesses that fail to comply may be engaged in unfair trade practice and are subject to investigation by the Office of the Attorney General and the Connecticut Department of Consumer Protection, according to the Office of the Attorney General.
Consumers who believe a business has failed to comply with the new requirements are encouraged to file a complaint with the Office of the Attorney General or the Connecticut Department of Consumer Protection.
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