Florida Automatic Renewal Cancellation Letter

Introduction

Key Things to Know

1. 1

   Florida's statute on this subject is titled Automatic renewal of service contracts, and the letter is your record ending one. Section 501.165 defines a service contract as a written contract for the performance of services over a fixed period of time or for a specified duration. The section speaks only of services, so before relying on it for a plan that ships products, check whether your agreement is a contract for services at all.

2. 2

   An automatic renewal provision, under subsection (1)(a), is one that renews a service contract for a specified period of more than 1 month where the renewal keeps the contract in effect more than 6 months after the day it began. Such renewal is effective unless the consumer gives notice to the seller of the intention to terminate, which is the notice your letter gives.

3. 3

   The protected consumer is an individual, as defined in Section 501.603, receiving service, maintenance or repair under a service contract. Subsection (1)(b) leaves out an individual engaged in business, or acting for a governmental entity, who enters the contract as part of or ancillary to business activities or on behalf of the business or governmental entity. A seller is any person, firm, partnership, association or corporation engaged in commerce that sells or leases a service under a service contract.

4. 4

   The cancellation route is set by subsection (2)(d). A seller that enters into or renews any service contract with an automatic renewal provision must allow the consumer to cancel in the same manner, and by the same means, as the consumer manifested his or her acceptance. If you accepted by signing a paper form, by a call or through a website, the letter should say so and name the matching route you used.

5. 5

   Subsection (2)(b) sets the reminder. For a service contract with a specified period of 12 months or more that automatically renews for more than 1 month, the seller shall provide written or electronic notification no less than 30 days or no more than 60 days before the cancellation deadline. It must disclose clearly and conspicuously that the contract will renew unless cancelled, and the methods for obtaining details of the renewal provision and cancellation procedure, such as a telephone number or address.

6. 6

   The consequence is written into subsection (2)(f): a violation of subsection (2) renders the automatic renewal provision void and unenforceable. Subsection (2)(c) lets a seller avoid a violation only by showing written compliance procedures it enforces, that the failure was an error, and that as routine practice the unearned portion of the contract is refunded as of the date the seller is notified of the error.

7. 7

   Subsection (2)(e) lists seven exclusions: financial institutions under Section 655.005 and depository institutions, licensed foreign bank branches or agencies, their subsidiaries and affiliates, a health studio as defined in Section 501.0125, entities licensed under chapter 624, 627, 634, 636 or 641, electric utilities under Section 366.02, and certain private companies providing chapter 180 services. Section 501.165 itself does not mention free trials or name a damages remedy.

Florida Requirements for Automatic Renewal Cancellation Letter

• A Written Service Contract for a Fixed Period

  Identify the written contract for the performance of services over a fixed period of time or for a specified duration, as Section 501.165(1)(d) defines a service contract, and describe the service, maintenance or repair it provides. The section speaks only of service contracts.

• An Automatic Renewal Provision Within Subsection (1)(a)

  Note the renewal clause and its term. Subsection (1)(a) covers a provision renewing the contract for a specified period of more than 1 month where the renewal keeps it in effect more than 6 months after the day it began.

• That You Contracted as an Individual, Not for a Business

  Subsection (1)(b) protects an individual receiving service, maintenance or repair, and leaves out an individual who enters the contract as part of or ancillary to business activities or on behalf of a business or governmental entity. State the capacity in which you signed.

• Confirmation the Seller Is Not Excluded by Subsection (2)(e)

  Check the seven exclusions: financial and depository institutions, licensed foreign bank branches or agencies and their affiliates, entities licensed under chapter 624, 627, 634, 636 or 641, electric utilities under Section 366.02, certain chapter 180 private companies, and one sector the subsection sends to its own statute.

• How You Manifested Acceptance, and the Matching Cancellation Route

  Subsection (2)(d) requires the seller to allow cancellation in the same manner, and by the same means, as you manifested acceptance. Record the method and date of acceptance and the method and date of cancellation so they can be compared.

• Whether the Subsection (2)(b) Notification Was Owed and Received

  For a term of 12 months or more renewing for more than 1 month, subsection (2)(b) requires written or electronic notification no less than 30 days or no more than 60 days before the cancellation deadline, disclosing the renewal and how to get details of the cancellation procedure. Record the date any notification arrived.

• The Void and Unenforceable Consequence in Subsection (2)(f)

  Quote subsection (2)(f): a violation of subsection (2) renders the automatic renewal provision void and unenforceable. Identify which duty was missed. The statute does not spell out the effect on amounts already paid, so state the facts rather than a figure.

• Disputed Charges and the Error Defense, Stated Without Predicting an Outcome

  List each disputed charge by date and amount. Subsection (2)(c) lets a seller avoid a violation by showing enforced written procedures, an error, and a routine refund of the unearned portion as of the date it is notified. Section 501.165 names no damages remedy. Attorney review is available as an option.