Hawaii Automatic Renewal Cancellation Letter

Introduction

Key Things to Know

1. 1

   A Hawaii automatic renewal cancellation letter is the written cancellation request that Section 481-9.5(i) of the Hawaii Revised Statutes turns into a measurable event: once a consumer has asked, a seller who knowingly fails to cancel the automatic renewal contract or continuous service contract is deemed to have engaged in an unfair or deceptive act or practice under Section 480-2. Dating the request and naming the contract makes that request provable.

2. 2

   Section 481-9.5 sits in Chapter 481, the Fair Trade Regulations, and subsection (k) supplies its definitions. Automatic renewal means a paid subscription or purchasing agreement with a term of more than one month that is automatically renewed at the end of a definite term for a specified term of more than one month. Continuous service means a paid subscription or purchasing agreement that continues until the consumer cancels the service. Consumer takes the Section 480-1 meaning: a natural person buying primarily for personal, family or household purposes.

3. 3

   Subsection (g) names the cancellation contacts the offer must include: a toll-free telephone number, an electronic-mail address, a postal address if the seller directly bills you, or a clearly and conspicuously described cost-effective, timely and easy-to-use alternative means to communicate the cancellation. Subsections (a) and (d) also require the renewal or continuous service clause, and the procedure for cancelling, to appear clearly and conspicuously in the consumer contract itself.

4. 4

   Clearly and conspicuously has a fixed meaning in subsection (k): larger type than the surrounding text, contrasting type, font or color, or set off by symbols or other marks that clearly call attention to the language. For an audio disclosure it means a volume and cadence sufficient to be readily audible and understandable. A cancellation term buried in ordinary fine print can be described against that definition in your letter.

5. 5

   Subsection (b) covers contracts with a specified term of twelve months or more that renew for more than one month. The seller shall notify you clearly and conspicuously that the contract will renew unless you cancel, how to cancel, and the deadline to respond, and that notice shall be sent no less than thirty days and no more than sixty days before the deadline. Subsection (c) allows electronic delivery only if the sale was conducted electronically under chapter 489E or you elected electronic communications and gave an email address.

6. 6

   Subsection (e) bars charging your credit or debit card or third-party account for an automatic renewal or continuous service without first obtaining your affirmative consent to the agreement containing the offer terms. Subsection (f) requires an acknowledgment you may retain with the terms, cancellation policy and procedure, and for a free trial it must disclose your right to cancel before payment. Subsection (h) requires notice of a material change, with cancellation information, prior to its implementation.

7. 7

   Section 480-2(d) allows a consumer, the attorney general or the director of the office of consumer protection to bring an action based on unfair or deceptive acts or practices. Section 480-13(b)(1) provides that a consumer injured by such a practice may sue for damages and, if the judgment is for the plaintiff, shall be awarded not less than $1,000 or threefold damages, whichever is greater, with reasonable attorney's fees and costs. The letter can cite these sections; attorney review is available as an option before relying on them.

Hawaii Requirements for Automatic Renewal Cancellation Letter

• Which Kind of Contract It Is Under Section 481-9.5(k)

  State whether the contract is an automatic renewal, meaning a paid subscription or purchasing agreement with a term of more than one month renewed for a specified term of more than one month, or continuous service that runs until you cancel. The consumer must be a natural person buying primarily for personal, family or household purposes, as Section 480-1 defines it.

• Confirmation the Seller Is Not Exempt Under Subsection (j)

  Check the four exemptions: chapter 412 financial institutions, insurers under chapters 431, 432 or 432D, telecommunications providers under chapter 269, and cable operators under chapter 440G, each to the extent of its regulated activities. A bank account, insurance policy, phone line or cable plan may fall outside the section.

• A Clear, Dated Request to Cancel

  Subsection (i) turns on a knowing failure to cancel upon consumer request, so the letter should ask plainly for cancellation, name the contract and account, give an effective date, and be dated. Keep a copy and any delivery record so the date of the request can be shown later.

• The Subsection (g) Contacts the Seller Listed, or Did Not

  Record which contacts the contract or acknowledgment gave: toll-free telephone number, electronic-mail address, postal address if the seller bills you directly, or a clearly and conspicuously described cost-effective, timely and easy-to-use alternative. Note any earlier attempt by phone or online, with the date and result.

• Whether the Subsection (b) Notice Was Owed and Received

  For a contract term of twelve months or more renewing for more than one month, record your response deadline and the date any notice arrived. Subsection (b) requires it no less than thirty and no more than sixty days before that deadline, stating the renewal, how to cancel and the deadline.

• Acknowledgment, Free Trial Disclosure and Material Changes

  Subsection (f) requires a retainable acknowledgment with the offer terms, cancellation policy and procedure, and for a free trial a clear disclosure of the right to cancel before payment. Subsection (h) requires notice of a material change, with cancellation information, before it takes effect. Note what you received and when.

• Charges Made Without Affirmative Consent

  Subsection (e) bars charging your card or third-party account for an automatic renewal or continuous service without first obtaining affirmative consent to the agreement containing the offer terms. List each disputed charge by date and amount and say whether you gave that consent.

• The Section 480-2 and 480-13 Reference, Stated Without Predicting an Outcome

  Subsection (i) deems a knowing violation or knowing failure to cancel an unfair or deceptive act under Section 480-2. Section 480-13(b)(1) lets an injured consumer sue and, on a judgment for the plaintiff, awards not less than $1,000 or threefold damages, whichever is greater, with fees and costs. Attorney review is available as an option before relying on it.