KRS § 365.402 — KY Code / Title XXIX / Chapter 365 / Section 365.402
365.402 Requirements of businesses offering automatic renewals or continuous service offers -- Cancellation or termination -- Notice of material change
Status: in_force

365.402 Requirements of businesses offering automatic renewals or continuous

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.