Service contracts; terms defined; certain disclosures in advertising required; disclosures of limitations of contracts further provided for

HB 5 requires companies selling service contracts (like extended warranties) to clearly state in advertisements if they can refund less than repair costs or if contracts have limitations. It directly affects providers of these contracts, mandating specific disclosures about refund terms and contract exclusions before consumers purchase them. The bill updates Alabama's existing service contract rules to strengthen transparency for consumers, though it maintains current exemptions for warranties, utility contracts, and low-cost agreements under $250. This focuses on informing buyers about potential restrictions, not changing what contracts cover.