§ 75-41. Contracts with automatic renewal clauses. - North Carolina Statutes

§ 75‑41.  Contracts withautomatic renewal clauses.

(a)        Any person, firm,or corporation engaged in commerce that sells, leases, or offers to sell orlease, any products or services to a consumer pursuant to a contract, where thecontract automatically renews unless the consumer cancels the contract, shalldisclose the automatic renewal clause clearly and conspicuously in the contractor contract offer.

(b)        Any person, firm,or corporation engaged in commerce that sells, leases, or offers to sell orlease, any products or services to a consumer pursuant to a contract, where thecontract automatically renews unless the consumer cancels the contract, shalldisclose clearly and conspicuously how to cancel the contract in the initialcontract, contract offer, or with delivery of products or services.

(c)        A person, firm, orcorporation that fails to comply with the requirements of this section is inviolation of this section unless the person, firm, or corporation demonstratesthat all of the following are its routine business practice:

(1)        It has establishedand implemented written procedures to comply with this section and enforcescompliance with the procedures.

(2)        Any failure tocomply with this section is the result of error.

(3)        Where an error hascaused the failure to comply with this section, it provides a full refund orcredit for all amounts billed to or paid by the consumer from the date of therenewal until the date of the termination of the contract, or the date of thesubsequent notice of renewal, whichever occurs first.

(d)        This section doesnot apply to insurers licensed under Chapter 58 of the General Statutes, or tobanks, trust companies, savings and loan associations, savings banks, or creditunions licensed or organized under the laws of any state or the United States,or any foreign bank maintaining a branch or agency licensed under the laws ofthe United States, or any subsidiary or affiliate thereof.

(e)        A violation of thissection renders the automatic renewal clause void and unenforceable. (2007‑288, s. 1; 2007‑507,s. 17.)