North Dakota Automatic Renewal Cancellation Letter

Introduction

Key Things to Know

1. 1

   Century Code chapter 51-37, titled Customer Contract Clauses and Automatic Renewals, governs a plan in which a paid subscription or purchasing agreement renews for a period of more than one month at the end of a definite period, and a North Dakota automatic renewal cancellation letter is the customer's written record of ending one. Section 51-37-01 defines the agreement as a written agreement with a party acting in the usual course of business for merchandise, personal property, real property or services.

2. 2

   The chapter speaks of customers and buyers rather than household consumers, and Section 51-37-02 reaches any person that sells or offers to sell merchandise or a service for a specified period under an agreement with a provision for automatic renewal. The 2023 amendments to sections 51-37-01, 51-37-02 and 51-37-04 apply to contracts entered after July 31, 2023, so note when you signed.

3. 3

   Section 51-37-02(1) sets three duties at sign-up. The seller must present the renewal terms clearly and conspicuously before the agreement is fulfilled and in proximity to the offer, give an acknowledgment with those terms and information on how to cancel in a form you can keep, and provide a cost-effective, timely, and simple procedure for cancellation that the acknowledgment describes.

4. 4

   Subsection 2 adds a reminder for renewals of more than six months. The seller shall give clear and conspicuous written notice that you may cancel and avoid renewal, by first-class mail, email, or a text message or mobile application if you specifically authorized that form. It must include the procedure for canceling and arrive at least thirty and not more than sixty days before renewal or the end of the cancellation period.

5. 5

   Subsection 3 requires clear and conspicuous notice of any material change in the terms, with information on how to cancel in a form you can keep. Subsection 4 bars any charge to your credit card, debit card, bank account or other financial account unless the seller met subsection 1 and obtained your affirmative consent. Subsection 5 says the renewal period may not exceed twelve months.

6. 6

   Section 51-37-04 states two consequences. An automatic renewal provision in violation of the chapter is unenforceable and void. Merchandise sent or a service provided because of a renewal that did not comply with Section 51-37-02, or after a buyer undertook an affirmative act to cancel or otherwise avoid charges, is considered an unconditional gift that you may dispose of as you see fit without any obligation to the person.

7. 7

   Enforcement runs two ways. Section 51-37-05 lets the attorney general enforce the chapter with the powers and remedies of chapter 51-15, the unlawful sales or advertising practices law, and makes each act a separate violation of that chapter. Section 51-37-06 lets a person aggrieved by a violation sue to enjoin it or for restitution, or both, with costs, expenses and reasonable attorney's fees available at the court's discretion.

North Dakota Requirements for Automatic Renewal Cancellation Letter

• Whether the Agreement Is an Automatic Renewal Under Section 51-37-01

  The chapter covers a paid subscription or purchasing agreement that renews for a period of more than one month at the end of a definite period, under a written agreement with a party acting in the usual course of business. State what the plan is and how long each renewal period runs.

• The Date You Entered the Agreement

  The 2023 amendments to sections 51-37-01, 51-37-02 and 51-37-04 apply to contracts entered after July 31, 2023. Record when you signed up and any later renewal dates.

• Confirmation the Seller Is Not Excepted Under Section 51-37-03

  Check the three exceptions: insurance regulated under title 26.1, public utilities regulated under title 49 or by the Federal Communications Commission and their services, and banks, bank holding companies, credit unions and other financial institutions or trust companies regulated under title 6.

• The Acknowledgment and the Cancellation Procedure It Described

  Section 51-37-02(1) requires an acknowledgment with the renewal terms and how to cancel, in a form you can keep, and a cost-effective, timely, and simple procedure for cancellation described in it. Say whether you received one, what it described, and what happened when you used it.

• Whether the Renewal Notice Was Owed and When It Came

  For a renewal of more than six months, Section 51-37-02(2) requires clear and conspicuous written notice, with the procedure for canceling, at least thirty and not more than sixty days before renewal, by first-class mail, email or an authorized text or app message. Record the date any notice arrived.

• Charges Made Without Affirmative Consent, or for a Term Over Twelve Months

  Section 51-37-02(4) bars charges unless subsection 1 was met and affirmative consent obtained, and subsection 5 caps the renewal period at twelve months. List each charge by date and amount, and the length of the renewal term.

• Merchandise or Service After Your Affirmative Act to Cancel

  Section 51-37-04 treats merchandise sent or a service provided after a buyer undertook an affirmative act to cancel or otherwise avoid charges, or because of a noncompliant renewal, as an unconditional gift with no obligation to the person. List dates after your cancellation.

• The Enforcement Sections, Cited Without Predicting an Outcome

  Section 51-37-06 lets a person aggrieved by a violation sue to enjoin it or for restitution, with costs, expenses and reasonable attorney's fees at the court's discretion; Section 51-37-05 gives the attorney general chapter 51-15 powers. Attorney review is available as an option before relying on them.