Senate Bill Targets Predatory Subscription Models

Journalist: Cole Norrid (SE)

Bill OSU-007, or the “Oklahoma Fair Renewal” act, was presented to the Senate floor today by Sen. Morris from Oklahoma State University and was met with overwhelming support, passing 24-0. The bill sets a number of rules for how subscription services are to be handled, and especially focuses on the processes for signing up for and canceling subscription based services. 

Section 3 of the bill outlines several requirements for companies offering subscriptions. If the subscription service in question can be opted into via a website or app, it must be possible to cancel the subscription through the same means. It also says that all terms for the service must be provided up front before any purchase is made, including information regarding how to cancel the service and the terms of automatic renewal. Terms and the means to terminate a subscription must be highlighted in a clear and conspicuous manner, defined by the bill as being “in larger type than surrounding text, in contrasting type, font, or color to surrounding text of the same size,” and so on. There is also a provision stating that verbal terms should include said information spoken in a clear, audible and understandable cadence and volume. The bill adds that a subscription may not automatically renew for a period of more than one year. None of the above provisions apply to newspapers or utilities. 

Sen. Morris said in the chamber that OSU-007 is based on two bills from the Oklahoma State House of Representatives and the Oklahoma State Senate respectively. Both bills had similar intentions to OSU-007, but the legislature was unable to resolve differences in enforcement. Sen. Morris chose to use the Oklahoma Consumer Protection Act as a means of enforcement for the bill’s new rules.