Auto-renewal contracts have restrictions in Florida. See below.
Is a automatic renewal clause enforceable?
Lowndes, Drosdick, Doster, Kantor & Reed, P.A.February 18, 2019
Apparently unbeknownst to many as-a-Service providers and their customers, both state and federal law restrict automatic renewal clauses, particularly in the consumer context. Florida Statute §501.165 requires that automatic renewal provisions in service contracts be clear and conspicuous, and that the consumer be notified no less than 30 days nor more than 60 days before their contract automatically renews, if the initial contract is 12 months or more and if it automatically renews for more than 1 month. Additionally, the Federal Trade Commission has attacked automatic renewal clauses in recent years through enforcement of the Restore Online Shoppers Confidence Act (“ROSCA”).
Second Wave of Auto-Renew Lawsuits Makes Business Model Risky
Sedgwick LLPMeegan BrooksAugust 13, 2015
The recent uptick in litigation — which has been brought against startups and established companies alike, in a wide variety of industries — shows that no company is immune from these potentially expensive actions.[1] These include California (Cal. Bus. & Prof. Code §§ 17600-17606), Connecticut (Conn. Gen. Stat. § 42-126b), Florida (Fla. Stat. § 501.165), Georgia (O.C.G.A. § 13-12-3), Illinois (815 ILCS 601/10), Louisiana (La. Rev. Stat. § 9:2716), Maryland (Md. Code Com. Law § 14-12B-06), New Hampshire (N.H. Rev. Stat. § 358-I:5), New York (N.Y. Gen. Oblig. Law § 5-903), North Carolina (N.C. Gen. Stat. § 75-41), Oregon (Or. Rev. Stat. §§ 646A.293, .295), Rhode Island (R.I. Gen. Laws § 6-13-14), South Carolina (S.C. Code § 44-79-60), South Dakota (S.D. Codified Laws § 49-31-116), Tennessee (Tenn. Code §§ 62-32-325, 47-18-505), and Utah (Utah Code § 15-10-201).
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