Senate Banking & Insurance Committee Amendment
S 434 - Session 125 (2023-2024)
Service contracts

The Committee on Banking and Insurance proposes the following amendment (LC-434.PH0003S):

Amend the bill, as and if amended, SECTION 1, by striking Section 38-78-55 and inserting:

 Section 38-78-55. No automatic renewal provision in a service contract shall be enforceable against the contract holder unless the contract holder was presented written or electronic notification of that automatic renewal provision not less than thirty days nor more than sixty days before the cancellation deadline required by the automatic renewal provision. This notification shall conspicuously disclose:
 (A)that unless the service contract holder cancels the contract, the contract will automatically renew;
 (B) the amount that will be charged upon renewal; and
 (C) methods by which the service contract holder may obtain details of the automatic renewal provision and cancellation procedure, which shall include a toll-free telephone number, electronic email address, a postal address if the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for cancellation.

Amend the bill further, by adding appropriately numbered SECTIONS to read:

SECTION X. Chapter 6, Title 37 of the S.C. Code is amended by adding:

 Section 37-6-120. No automatic renewal provision in a service contract shall be enforceable against the contract holder unless the contract holder was presented written or electronic notification of that automatic renewal provision not less than thirty days nor more than sixty days before the cancellation deadline required by the automatic renewal provision. This notification shall conspicuously disclose:
 (A)that unless the service contract holder cancels the contract, the contract will automatically renew;
 (B) the amount that will be charged upon renewal; and
 (C) methods by which the service contract holder may obtain details of the automatic renewal provision and cancellation procedure, which shall include a toll-free telephone number, electronic email address, a postal address if the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for cancellation.

SECTION X. Section 38-78-20 of the S.C. Code is amended by adding:

(18) "Automatic renewal provision" means a provision under which a service contract is renewed for a specified period of more than one month if the renewal causes the service contract to be in effect more than six months after the day of the initiation of the service contract. Such renewal is effective unless the consumer gives notice to the seller of the consumer's intention to terminate the service contract. This term does not include a contract renewal for services provided by a telecommunications carrier or its affiliate when either the carrier or the affiliate is regulated by the South Carolina Public Service Commission or the Federal Communications Commission.

SECTION X. Section 37-1-301 of the S.C. Code is amended by adding:

(31) "Automatic renewal provision" means a provision under which a service contract is renewed for a specified period of more than 1 month if the renewal causes the service contract to be in effect more than 6 months after the day of the initiation of the service contract. Such renewal is effective unless the consumer gives notice to the seller of the consumer's intention to terminate the service contract. This term does not include a contract renewal for services provided by a telecommunications carrier or its affiliate when either the carrier or the affiliate is regulated by the South Carolina Public Service Commission or the Federal Communications Commission.
(32) "Service contract" means a written contract for the performance of services over a fixed period of time or for a specified duration.