Amends TCA Title 47, Chapter 18.

Under the present law Consumer Protection Act, the commission of an unfair or deceptive act or practice affecting the conduct of trade or commerce is a Class B misdemeanor offense. A person who suffers a loss due to a violation of the Act may bring a civil action for damages, in which the court may award treble damages for a willful or knowing violation. This bill requires a business that makes an automatic renewal or continuous service offer to a consumer in this state to do the following: (1) Present the automatic renewal or continuous service offer terms in a clear and conspicuous manner before the subscription or purchasing agreement is fulfilled. If the offer includes a free gift or trial, the offer must 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 purchasing agreement pricing will change upon conclusion of the trial; (2) Obtain the consumer's consent to the automatic renewal or continuous service offer terms before charging the consumer for an automatic renewal offer or continuous service offer; and (3) Provide an acknowledgment that includes the automatic renewal 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. This bill defines "automatic renewal" to mean a plan or arrangement in which a paid subscription or purchasing agreement is automatically renewed at the end of a definite term for a subsequent term. This bill defines "continuous service" to mean a plan or arrangement in which a subscription or purchasing agreement continues until the consumer cancels the service. This bill also requires a business that makes an automatic renewal or continuous service offer to provide a toll-free telephone number, electronic mail address, a postal address if the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for cancellation that must be described in the acknowledgment specified in (3). This bill requires a business that allows a consumer to accept an automatic renewal or continuous service offer online to allow the consumer to terminate the automatic renewal or continuous service exclusively online. If there is a material change in the terms of the automatic renewal or continuous service that has been accepted by a consumer in this state, this bill requires the business to 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. A violation of this bill's requirements for businesses that make an automatic renewal or continuous service offer will be a violation of the Consumer Protection Act of 1977. This bill takes effect January 1, 2023. ON FEBRUARY 24, 2022, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1652, AS AMENDED. AMENDMENT #1 adds that this bill's requirements for a business that makes an automatic renewal offer or continuous service offer to a consumer in this state do not apply to the following: (1) A state or national bank or trust company insured by the federal deposit insurance corporation or an operating subsidiary of that bank or trust company; (2) A state or federal credit union insured by the national credit union administration; (3) An individual or entity licensed by the department of financial institutions; (4) A service provided by a business, or its affiliate, pursuant to: (A) A franchise issued by a political subdivision of this state; or (B) A license, franchise, certificate, or other authorization issued by the Tennessee public utility commission; (5) An individual or business, or an affiliate of the individual or business, regulated by the Tennessee public utilities commission, the federal communications commission, or the federal energy regulatory commission; or (6) A business licensed under the insurance laws of this state. ON MARCH 10, 2022, THE SENATE SUBSTITUTED HOUSE BILL 1652 FOR SENATE BILL 2279, AND RESET HOUSE BILL 1652.