Automatic renewal clauses in consumer contracts must be clearly disclosed and consumers must be notified before renewal.
North Carolina H188 requires businesses to clearly disclose automatic renewal clauses in consumer contracts. The disclosure must include the renewal date, initial and renewal term lengths, charges, and any changes in contract terms. Consumers must be notified at least 15 days before renewal, with options to cancel online or via other cost-effective means. This law does not apply to insurers, financial institutions, or entities regulated by the Federal Communications Commission.
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