We have all had to deal with an automatic renewal provision in a contract. Where companies get into trouble with these provisions is when they try to hide the provision, or, in an online context, the renewal box is prechecked by default and hidden at the bottom of the page.
Multiple states have enacted laws regulating this practice. These state laws are aimed at protecting consumers from unknowingly entering into these types of agreements by requiring that evergreen clauses be presented in a clear and conspicuous manner and that sellers of such contracts provide a written notice to consumers about an upcoming renewal.
Senate Bill 93 provide such protections for consumers in Delaware. This bill also requires sellers of such contracts to provide consumers with a means to cancel the contract that is at least as easy to use as the means available to sign up for the contract.
|Senate Bill 93 Sponsors||Yes Votes||No Votes|
|Poore, Ennis, Gay, Hansen|
|Longhurst, Heffernan, Hensley, Lambert, Osienski, Wilson-Anton|
|Current Status — Senate Banking, Business & Insurance 3/30/21|