LANSING, Mich.—Today, Rep. Mari Manoogian (D-Birmingham) introduced HB 5933, a bipartisan bill that would protect consumers from subscription service companies looking to use unfair or hidden automatic renewal provisions within their contracts.
Unlike single-service businesses, the lifeblood of subscription service or subscriber businesses is customer retention. Unfortunately, subscriber businesses often use automatic renewal provisions—frequently buried deep in the terms and conditions—to put the onus on customers to remember exactly the day of the month or year that they originally registered for a service in order to cancel a subscription before they get charged again automatically.
According to The Washington Post, the typical American now has two to three subscriptions, with budgeting app Truebill by Rocket announcing that its average user has 17 subscriptions, totaling $145.00 per month.
“While automatic subscriptions can be convenient for customers and companies alike, they can often lead to unwanted renewals and charges for everyday Michiganders,” said Rep. Manoogian. “This bill will require companies to engage in fair business practices when they want to charge someone periodically for a service—a minimal burden which I believe keeps Michiganders, and their pocketbooks, safe.
“By passing HB 5933, we can turn Michigan into a national leader on consumer protections by simply requiring that businesses follow industry best practices. I look forward to being able to discuss this important legislation in committee soon.”
Rep. Mari Manoogian represents the communities of Birmingham, Bloomfield Hills, Bloomfield Township, and the eastern portion of West Bloomfield Township. In addition to serving as Deputy Whip for the Michigan House Democratic Caucus, she is also the Minority Vice Chair of the House Committee on Energy and is a member of the House Committee on Commerce and Tourism