Relating to requirements for subscription service contracts; providing a civil penalty.

HB 2859 requires businesses selling subscription services (like streaming, gym memberships, or meal kits) to clearly explain key details to consumers at sign-up and before automatic renewals. Specifically, it mandates that businesses must: 1) clearly state the contract’s nature upfront, 2) provide easy cancellation instructions before the first payment, and 3) send additional written notice about automatic renewals 90 days before renewal for contracts lasting a year or longer. This bill directly affects subscription service providers and sellers, aiming to prevent unexpected charges by improving transparency. It does not create new penalties but establishes these disclosure rules as part of Texas law.