Georgia Legislature: House passes Smith's automatic renewal provision

From Special Reports
news@newnan.com
The Georgia House of Representatives passed House Bill 234 Thursday with a vote of 167 to 2.
Introduced by state Representative Lynn Smith, R-Newnan, HB 234 would provide consumers with a written notice prior to the automatic renewal of a service contract.
“House Bill 234 will alert the consumer to an automatic renewal provision in a service contract,” said Smith.
“HB 234 is aimed at protecting the rights of consumers,” she added.
This legislation is designed to help the consumers who may enter into contracts without knowing about automatic renewal clauses beforehand.”
HB 234 requires sellers to notify consumers of any automatic renewal provisions that may be included in their service contracts.
It would also require that the automatic provision be clearly and conspicuously disclosed in the contract.

This bill does not apply to a person engaged in business or employed by or otherwise acting on behalf of a governmental entity if the person enters into the service contract as part of or ancillary to the person’s business activities or on behalf of the business or governmental entity.

At least 10 other states have passed similar automatic renewal legislation aimed at consumer protection.

Smith felt the need to introduce this piece of legislation after hearing the concerns of her constituents regarding their issues with automatic renewal provisions.

She was contacted by a facilities manager of a church in House District 70 who was a victim of an unwanted automatic renewal contract without his knowledge.

Automatic renewal provisions are provisions in service contracts that automatically renew the contract for the specified period of time.

HB 234 will now go to the Georgia Senate for consideration.



More Local

Century-old cemetery discovered

The 100-year-old cemetery discovered by crews clearing land for the Newnan Bypass extension was known to exist in the area, and an archeolog ... Read More


One Roof thrit store reopen Jan. 5 in new location

Friday was One Roof’s last day at its former location in the old Playtex plant on Temple Avenue. The organization's thrift store will ... Read More


Ferst Foundation holds annual CCSS coin drive

In its eighth year of holding a coin drive to benefit the Ferst Foundation for Childhood Literacy, the Coweta County School System raised mo ... Read More


Senoia Redneck Gourmet to close

After six successful years, Casey Smith has decided to close the doors of the Redneck Gourmet in Senoia. As the owner of both the Newnan and ... Read More


Boys & Girls Club

NHS student one of top youths of year

After months of preparation, a Newnan High School student was honored as one of the top youths of the year by the Boys and Girls Club of Met ... Read More

Thousands of lights on display on Hannah Road

It’s hard to miss the Bentons’ Christmas decorations as you’re driving down Hannah Road south of Newnan. The Bentons, who ... Read More