Bill to Make it Easier for Consumers to End Automatic Contract Renewals Passes Committee

SB25-145 would require sellers to offer simple, online cancellation of automatic renewal contracts or trial periods

DENVER, CO – A bill to protect consumers from burdensome automatic renewal contract cancellations passed the Senate Business, Labor and Technology Committee today. 

Sponsored by Senator Cathy Kipp, D-Fort Collins, SB25-145 would require sellers of goods and services to implement simple mechanisms for consumers to cancel automatic renewal contracts and trial periods either online or in-person. Failure to do so would constitute a deceptive trade practice under the Colorado Consumer Protection Act.

“There is nothing more frustrating than signing up for a free trial or a subscription only to have to jump through hoop after difficult hoop to try to cancel that subscription,” Kipp said. “This bill would help prevent deceptive practices and simplify the process for Coloradans to cancel their subscriptions online, saving them time and money in the long run.”

SB25-145 closes a loophole in Kipp’s HB21-1239, which provided transparency to consumers entering into automatic renewal contracts, to further shore up consumer protections.

This bill joins a host of other bills by Colorado Democrats to protect consumers this session, including SB25-157, which would prevent deceptive trade practices that mislead consumers into buying a product or service, HB25-1090, which would protect against junk fees, and HB25-1010, which would prevent price gouging. 

SB25-145 now moves to the Senate floor for further consideration. Track its progress HERE.