365.402 Requirements of businesses offering automatic renewals or continuous
457 words·~2 min read·
/ky/365-402A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
service offers -- Cancellation or termination -- Notice of material change.
(1)A business that makes an automatic renewal or continuous service offer to a
consumer in this state shall:
(a)Present the automatic renewal offer terms or continuous service offer terms in
a clear and conspicuous manner before the subscription or purchase
agreement is fulfilled and in visual proximity, or in the case of an offer
conveyed by voice, in temporal proximity, to the request for consent to the
offer. If the offer also includes a free gift or trial, the offer shall include a clear
and conspicuous explanation of the price that will be charged after the trial
ends or the manner in which the subscription or purchase agreement pricing
will change upon conclusion of the trial;
(b)Obtain the consumer's affirmative consent to the purchase agreement with the
automatic renewal offer terms or continuous service offer terms, including the
terms of an automatic renewal offer or continuous service offer that is made at
a promotional or discounted price for a limited period of time, before charging
the consumer's credit or debit card, or the consumer's account with a third
party, for an automatic renewal offer or continuous service offer; and
(c)Provide an acknowledgment that includes the automatic renewal offer terms
or continuous service offer terms, cancellation policy, and information
regarding how to cancel in a manner that is capable of being retained by the
consumer. If the automatic renewal offer or continuous service offer includes
a free gift or trial, the business shall also disclose in the acknowledgment how
to cancel, and allow the consumer to cancel, the automatic renewal or
continuous service before the consumer pays for the goods or service.
(2)A business that makes an automatic renewal offer or continuous service offer shall
provide a toll-free telephone number, electronic mail address, postal address if the
seller directly bills the consumer, or another cost-effective, timely, and easy-to-use
mechanism for cancellation that shall be described in the acknowledgment specified
in subsection (1)(c) of this section.
(3)A business that allows a consumer to accept an automatic renewal or continuous
service online shall allow that consumer to terminate the automatic renewal or
continuous service offer exclusively online which may include a termination e-mail
formatted and provided by the business that a consumer can send to the business
without additional information.
(4)In the event of a material change in the terms of the automatic renewal or
continuous service that has been accepted by a consumer in this state, the business
shall provide the consumer with a clear and conspicuous notice of the material
change and provide information regarding how to cancel in a manner that is capable
of being retained by the consumer.