75-41. Contracts with automatic renewal clauses.
(a) Any person engaged in commerce that sells, leases, or offers to sell or lease, any products or services to a consumer pursuant to a contract, where the contract automatically renews unless the consumer cancels the contract, shall do all of the following:
(1) Disclose the automatic renewal clause clearly and conspicuously in the contract or contract offer.
(2) Disclose clearly and conspicuously how to cancel the contract in the initial contract, contract offer, or with delivery of products or services.
(3) For any automatic renewal exceeding 60 days, provide written notice to the consumer by personal delivery, electronic mail, or first-class mail, at least 15 days but no earlier than 45 days before the date the contract is to be automatically renewed, stating the date on which the contract is scheduled to automatically renew and notifying the consumer that the contract will automatically renew unless it is cancelled by the consumer prior to that date.
(4) If the terms of the contract will change upon the automatic renewal of the contract, disclose the changing terms of the contract clearly and conspicuously on the notification in at least 12 point type and in bold print.
(b) Repealed by Session Laws 2016-113, s. 16(a), effective July 26, 2016, and applicable to contracts entered into on or after that date.
(c) A person that fails to comply with the requirements of this section is in violation of this section unless the person demonstrates that all of the following are its routine business practice:
(1) The person has established and implemented written procedures to comply with this section and enforces compliance with the procedures.
(2) Any failure to comply with this section is the result of error.
(3) Where an error has caused the failure to comply with this section, the person provides a full refund or credit for all amounts billed to or paid by the consumer from the date of the renewal until the date of the termination of the contract, or the date of the subsequent notice of renewal, whichever occurs first.
(d) This section does not apply to insurers licensed under Chapter 58 of the General Statutes, or to banks, trust companies, savings and loan associations, savings banks, or credit unions licensed or organized under the laws of any state or the United States, or any foreign bank maintaining a branch or agency licensed under the laws of the United States, or any subsidiary or affiliate thereof, nor does this section apply to any entity subject to regulation by the Federal Communications Commission under Title 47 of the United States Code or by the North Carolina Utilities Commission under Chapter 62 of the General Statutes, or to any entity doing business directly or through an affiliate pursuant to a franchise, license, certificate, or other authorization issued by a political subdivision of the State or an agency thereof.
(d1) This section does not apply to real estate professionals licensed under Chapter 93A of the General Statutes.
(e) A violation of this section renders the automatic renewal clause void and unenforceable. (2007-288, s. 1; 2007-507, s. 17; 2016-113, s. 16(a); 2018-114, s. 4(a).)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 75 - Monopolies, Trusts and Consumer Protection
Article 1 - General Provisions.
§ 75-1 - Combinations in restraint of trade illegal.
§ 75-1.1 - Methods of competition, acts and practices regulated; legislative policy.
§ 75-2 - Any restraint in violation of common law included.
§ 75-2.1 - Monopolizing and attempting to monopolize prohibited.
§ 75-4 - Contracts to be in writing.
§ 75-8 - Continuous violations separate offenses.
§ 75-9 - Duty of Attorney General to investigate.
§ 75-10 - Power to compel examination.
§ 75-11 - Person examined exempt from prosecution.
§ 75-12 - Refusal to furnish information; false swearing.
§ 75-13 - Criminal prosecution; district attorneys to assist; expenses.
§ 75-14 - Action to obtain mandatory order.
§ 75-15 - Actions prosecuted by Attorney General.
§ 75-15.1 - Restoration of property and cancellation of contract.
§ 75-16 - Civil action by person injured; treble damages.
§ 75-16.2 - Limitation of actions.
§ 75-17 - Lender may not require borrower to deal with particular insurer.
§ 75-18 - Lender may require nondiscriminatory approval of insurer.
§ 75-19 - Violators subject to fine and injunction.
§ 75-20 - Unsolicited checks to secure loans.
§ 75-27 - Unsolicited merchandise.
§ 75-28 - Unauthorized disclosure of tax information; violation a Class 1 misdemeanor.
§ 75-29 - Unfair and deceptive trade names; use of term "wholesale" in advertising, etc.
§ 75-31 - Work-at-home solicitations.
§ 75-32 - Representation of winning a prize.
§ 75-33 - Representation of eligibility to win a prize.
§ 75-34 - Representation of being specially selected.
§ 75-35 - Simulation of checks and invoices.
§ 75-37 - Declaration of State public policy.
§ 75-39 - Conditioning services on electric service prohibited.
§ 75-40 - Deadline for mailing consumer rebates.
§ 75-41 - Contracts with automatic renewal clauses.
§ 75-43 - Solicitation of a fee for copy of recorded documents.