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ARTICLE · 20 JULY 2018

But Wait, There's More! Another Strict Auto-Renew Law Enacted

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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Vermont has enacted a new law that arguably requires marketers to do even more than ROSCA and California when signing up consumers to an automatically renewing agreement.

United StatesConsumer Protection

Vermont has enacted a new law that arguably requires marketers to do even more than ROSCA and California when signing up consumers to an automatically renewing agreement.  Vermont's new statute applies only to contracts with an initial term of one year or longer that renew for a subsequent term longer than one month.  Such contracts shall not automatically renew unless the contract clearly and conspicuously states the terms of the automatic renewal provision in "plain, unambiguous language in bold-face type" and, in addition to accepting the contract, the consumer takes an "affirmative action to opt-in to the automatic renewal provision."  In practice, this will mean that sellers of annual subscription services will need Vermont consumers to click twice: once on an order button and once to specifically accept the auto-renew provision.

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