Vermont Enacts Nation’s Most Stringent Automatic Renewal Law

On May 28, 2018, the Vermont legislature enacted the most stringent automatic renewal statute in the country. While similar to some state laws that govern auto-renewal contracts by requiring sellers to clearly and conspicuously disclose the material terms of the offer, obtain express consumer consent, provide an easy way to cancel and send a reminder notice prior to the start of a new term, Vermont now stands alone in two material respects: the auto-renewal provision in a contract must be presented in boldface type, and consumers must take two actions to accept the auto renewal offer. The new law, VT HB 593, goes into effect on July 1, 2019.

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