An Act providing for automatic renewal provisions in certain contracts for goods and services.

This Pennsylvania bill, known as the Contract Automatic Renewal Act, requires vendors to clearly disclose and notify consumers about contract terms that automatically renew for more than six months. The law mandates that these renewal clauses be highlighted in bold text and that consumers receive written notice at least 30 days before the renewal takes effect, along with specific instructions on how to cancel the agreement. If a business or contract is sold, the new owner must inform the customer within 60 days and provide an opportunity to opt out of the automatic renewal. Contracts that fail to meet these disclosure and notification standards will be considered void and unenforceable in the state. The legislation applies to most consumer service contracts but excludes specific industries such as insurance, utilities, and banking.