Kentucky Automatic Renewal Cancellation Letter

Introduction

Key Things to Know

1. 1

   Kentucky placed its automatic renewal law in Chapter 365, Trade Practices, at KRS 365.400 to 365.408, and this letter is your written termination of a plan that law covers. Section 365.400 names two kinds: an automatic renewal, where a paid subscription, membership or purchase agreement renews at the end of a definite paid term for a subsequent paid term of more than one month, and continuous service, where it continues for an indefinite term until you cancel.

2. 2

   Coverage turns on who you are and when you signed. Section 365.400(4) defines a consumer as an individual who acquires goods or services for personal, family or household purposes, so a purely business account sits outside it. Section 365.408 says the sections shall not apply to contracts entered into prior to January 1, 2024, so the enrollment date belongs in the letter.

3. 3

   Section 365.402(2) lists the cancellation mechanisms a business may offer: a toll-free telephone number, an electronic mail address, a postal address if the seller directly bills the consumer, or another cost-effective, timely and easy-to-use mechanism. Whichever it chooses shall be described in the acknowledgment required by subsection (1)(c). Use the route that acknowledgment names, and say in the letter that you did.

4. 4

   Online sign-ups carry a stronger rule. Under Section 365.402(3), a business that allows a consumer to accept online shall allow that consumer to terminate exclusively online, which may include a termination e-mail formatted and provided by the business that the consumer can send without additional information. A letter can record that no online route was offered, with the dates you looked.

5. 5

   At sign-up, subsection (1) required three things: the offer terms presented clearly and conspicuously in visual proximity to the request for consent, or temporal proximity for a voice offer; your affirmative consent before any charge to your card or third-party account, including for a promotional or discounted price; and an acknowledgment you can keep, stating the terms, the cancellation policy and how to cancel.

6. 6

   Free gifts, trials and changed terms have their own lines. Where an offer included a free gift or trial, subsection (1)(a) called for a clear explanation of the price after the trial ends, and subsection (1)(c) required the acknowledgment to say how to cancel and to allow cancellation before you pay. Subsection (4) requires clear and conspicuous notice of a material change, with information on how to cancel.

7. 7

   Section 365.406 sets out the consequences. On a first violation, subsection (1) says the business shall provide a prorated refund from the start of the most recent term to the date it was notified of and corrects the error. If it does not, or for a second or later violation, subsection (2) says the Attorney General may sue for an injunction, restitution and penalties not exceeding $500 for each violation. No private lawsuit is written into these sections, and attorney review is available as an option.

Kentucky Requirements for Automatic Renewal Cancellation Letter

• Which Section 365.400 Definition Your Plan Fits

  State whether the plan is an automatic renewal, renewing at the end of a definite paid term for a subsequent paid term of more than one month, or continuous service that runs for an indefinite term until you cancel. Section 365.400 limits consumer to an individual buying for personal, family or household purposes.

• Enrollment Date Against the January 1, 2024 Line

  Section 365.408 says Sections 365.400 to 365.408 shall not apply to contracts entered into prior to January 1, 2024. Give the date you enrolled, and the date of any later re-enrollment or new contract, so the business can see the plan is inside the statute.

• Confirmation the Business Is Not Exempt Under Section 365.404

  Check the ten exemptions: franchised or Kentucky Public Service Commission authorized services; services regulated by that Commission, the Federal Communications Commission or the Federal Energy Regulatory Commission; insurers; KRS 304.5-070 service contract providers; banks, credit unions, savings associations and licensed consumer loan companies; in-vehicle, roadside assistance and travel subscription providers; and solid waste management services.

• The Cancellation Mechanism Named in Your Acknowledgment

  Section 365.402(2) requires a toll-free telephone number, electronic mail address, postal address if the seller directly bills you, or another cost-effective, timely and easy-to-use mechanism, described in the acknowledgment. Record which one you used and when, or that the acknowledgment named none.

• Online Acceptance and the Exclusively Online Exit

  If you accepted online, Section 365.402(3) says the business shall allow you to terminate exclusively online, which may include a termination e-mail it formats and provides for you to send without additional information. Note the date and what happened when you looked for that option.

• Consent, Trial and Acknowledgment Facts From Sign-Up

  Section 365.402(1) required clear and conspicuous offer terms near the consent request, your affirmative consent before any charge, and a retainable acknowledgment. For a free gift or trial, it also required the post-trial price and a way to cancel before you pay. Record what you saw and received.

• Any Material Change and the Notice That Came With It

  Section 365.402(4) requires clear and conspicuous notice of a material change in accepted terms, with retainable information on how to cancel. Give the old and new terms, the date of the change, and the date and content of any notice. The section sets no fixed number of days.

• The Section 365.406 Reference, Stated Without Predicting an Outcome

  Section 365.406(1) says a business that fails to comply with Section 365.402 on a first violation shall provide a prorated refund from the start of the most recent term to the date it was notified of and corrects the error. Subsection (2) gives the Attorney General an action for an injunction, restitution and penalties up to $500 per violation. Cite it factually; attorney review is available as an option.