§ 51-37-02 — Use of automatic renewal

North Dakota § 51-37-02

• Jurisdiction: North Dakota
• Title 51: Sales and Exchanges
• Ch. 51-37: Customer Contract Clauses and Automatic Renewals

Text

1. A person that sells or offers to sell merchandise or a service for a specified period
under an agreement containing a provision for automatic renewal shall:
a. Present the terms of the automatic renewal offer in a clear and conspicuous
manner before a subscription or purchasing agreement is fulfilled and in proximity
to the offer;
b. Provide an acknowledgment that includes the terms of the automatic renewal
offer and information regarding how to cancel in a manner which is capable of
being retained by the buyer; and
c. Provide a cost-effective, timely, and simple procedure for cancellation which must
be described in the acknowledgment required by subdivision b.
2. A person that sells or offers to sell merchandise or a service for a specified period
under an agreement that contains a provision for automatic renewal for a period of
more than six months at the end of the time period specified in the agreement shall
provide a clear and conspicuous written notice to the buyer stating the buyer may
cancel the contract and avoid automatic renewal.
a. The written notice must be provided by:
(1) First-class mail;
(2) Electronic mail; or
(3) Any easily accessible form of communication, including text message or a
mobile application, if the consumer specifically authorizes the person to
provide notice in such form.
b. The written notice must include the procedure for canceling and must be given at
least thirty days and not more than sixty days before the date upon which the
agreement will be renewed or the expiration of the period for cancellation.
3. If there is a material change in the terms of an agreement that contains a provision for
automatic renewal, the seller shall provide the buyer with clear and conspicuous notice
of the material change and provide information regarding how to cancel in a manner
which is capable of being retained by the buyer.
4. A person that sells or offers to sell merchandise or a service for a specified period
under an agreement that contains a provision for automatic renewal may not make or
submit any charge to a buyer's credit card, debit card, bank account, account with a
third party, or other financial account, unless the person has complied with the
requirements of subsection 1 and obtained the buyer's affirmative consent to the
agreement containing the terms of the automatic renewal.

5. The renewal period in a provision for automatic renewal of an agreement may not
exceed twelve months.