An Act Relating to Automatic Contract Renewals
Maine Legislature, Session 127, LD 0894
Committee: Labor, Commerce, Research and Economic Development
Sponsors: WARD, PATRICK, AUSTIN, BATES, CAMPBELL, FECTEAU, HERBIG, LOCKMAN, MASTRACCIO, VOLK

Legislative Document 
No. 894 
H.P. 613 
House of Representatives, March 12, 2015 
An Act Relating to Automatic Contract Renewals 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative WARD of Dedham. 
Cosponsored by Senator PATRICK of Oxford and 
Representatives: AUSTIN of Gray, BATES of Westbrook, CAMPBELL of Newfield, 
FECTEAU of Biddeford, HERBIG of Belfast, LOCKMAN of Amherst, MASTRACCIO of 
Sanford, Senator: VOLK of Cumberland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  10 MRSA c. 229 is enacted to read: 
CHAPTER 229 
AUTOMATIC CONTRACT RENEWAL ACT 
§1500-H.  Short title 
This chapter may be known and cited as "the Automatic Contract Renewal Act." 
§1500-I.  Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1.  Consumer.  "Consumer" means an individual, business, corporation or other legal 
entity receiving products, services or repair under a contract. 
2.  Contract.  "Contract" means a written agreement between 2 or more parties. 
3.  Parties.  "Parties" includes individuals and other legal entities, but does not 
include the Federal Government, the State or another state, a unit of local government or 
a school district. 
§1500-J.  Automatic renewal; requirements 
1.  Automatic renewal.  A person, firm, partnership, association or corporation that 
sells or offers to sell a product or service to a consumer pursuant to a contract that 
automatically renews unless the consumer cancels the account shall disclose the 
automatic renewal clause clearly and conspicuously in the contract, including the 
cancellation procedure.  The automatic renewal clause must be printed in upper case 
letters, underscored and in bold print of a print size larger than the text of the rest of the 
contract. 
2.  Written notice.  A person, firm, partnership, association or corporation that sells 
or offers to sell a product or service to a consumer pursuant to a contract that has a 
specified term of 12 months or more and that automatically renews for a specified term of 
more than one month unless the consumer cancels the contract shall notify the consumer 
in writing of the automatic renewal.  Written notice under this subsection must be 
provided to the consumer no fewer than 30 days and no more than 60 days before the 
cancellation deadline pursuant to the automatic renewal clause and must disclose clearly 
and conspicuously: 
A.  That unless the consumer cancels the contract it will automatically renew; and 
B.  Where the consumer may obtain details regarding the automatic renewal 
provision and cancellation procedure. 
§1500-K.  Applicability 
1.  Financial institutions.  This chapter does not apply to a bank, trust company, 
savings and loan association, savings bank or credit union licensed or organized under the 
laws of any state or the United States or to a foreign bank maintaining a branch or agency 
licensed or organized under the laws of any state or the United States or any subsidiary or 
affiliate. 
2.  Contract changes.  This chapter does not apply to a contract that is extended 
beyond the original term of the contract as the result of a consumer's initiation of a 
change in the original contract terms. 
Sec. 2.  Application.  This Act does not apply to a contract entered into before the 
effective date of this Act. 
SUMMARY 
This bill requires any entity who sells or provides services through an automatic 
renewal contract to disclose to the consumer the automatic renewal clause clearly and 
conspicuously in the contract, including the cancellation procedure.  The bill also requires 
that written notice be provided to the consumer no fewer than 30 days and no more than 
days before the cancellation deadline pursuant to the automatic renewal clause.