Automatic renewals may soon end

September 1, 2009 5:39:23 PM PDT
A bill that would protect consumers from a deceptive business practice is making its way to the governor's desk.

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The practice of re-upping you for memberships, magazine subscriptions, and the like, is finally being taken up by lawmakers.

The legislature passed a bill by Senator Leland Yee, D-San Francisco, that would ban that practice.

Consumers complained again and again, for being resigned up for Acai products. They were surprised when their orders were automatically renewed and credit cards automatically charged.

The Arizona attorney general recently entered into a $1 million judgment against Central Coast Nutraceuticals.

The bill by Senator Yee would require businesses to clearly and conspicuously state the renewal offer terms and require a customer's permission before renewing.

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