Section 201 – Notice requirement.

• (1) Except as provided in Subsection (2)(b), a service contract may not contain an automatic renewal provision unless the seller provides the consumer written notice complying with Subsection (2) that informs the consumer of the automatic renewal provision.

• (2)
  • (a) For a service contract executed on or after July 1, 2011, that exceeds 12 months for a renewal period, a seller shall provide written notice of an automatic renewal provision prominently displayed on the first page of the service contract.
  • (b) In addition to complying with Subsection (2)(a), a seller shall provide written notice required under Subsection (1) to the consumer:
    • (i) personally;
    • (ii) by certified mail; or
    • (iii) prominently displayed on the first page of a monthly statement.
  • (c)
    • (i) A seller shall provide written notice under Subsection (2)(b):
      • (A) no later than 30 calendar days before the last day on which the consumer may give notice of the consumer’s intention to terminate the service contract; and
      • (B) no sooner than 90 calendar days before the last day on which the consumer may give notice of the consumer’s intention to terminate the service contract.
    • (ii) A seller may not provide written notice required under Subsection (1) except:
      • (A) as provided in Subsection (2)(a); or
      • (B) during the time period described in Subsection (2)(c)(i).
  • (d) Written notice required under Subsection (1) shall be:
    • (i) written in clear and understandable language; and
    • (ii) printed in an easy-to-read type size and style.

Amended by Chapter 189, 2014 General Session