Notice requirement.

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  • (1) Except as provided in Subsection (2)(b), a service contract may not contain an automatic renewal provision unless the seller provides the consumer written notice complying with Subsection (2) that informs the consumer of the automatic renewal provision.
  • (2)
    • (a) For a service contract executed on or after July 1, 2011, that exceeds 12 months for a renewal period, a seller shall provide written notice of an automatic renewal provision prominently displayed on the first page of the service contract.
    • (b) In addition to complying with Subsection (2)(a), a seller shall provide written notice required under Subsection (1) to the consumer:
      • (i) personally;
      • (ii) by certified mail; or
      • (iii) prominently displayed on the first page of a monthly statement.
    • (c)
      • (i) A seller shall provide written notice under Subsection (2)(b):
        • (A) no later than 30 calendar days before the last day on which the consumer may give notice of the consumer's intention to terminate the service contract; and
        • (B) no sooner than 90 calendar days before the last day on which the consumer may give notice of the consumer's intention to terminate the service contract.
      • (ii) A seller may not provide written notice required under Subsection (1) except:
        • (A) as provided in Subsection (2)(a); or
        • (B) during the time period described in Subsection (2)(c)(i).
    • (d) Written notice required under Subsection (1) shall be:
      • (i) written in clear and understandable language; and
      • (ii) printed in an easy-to-read type size and style.




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