Oregon Automatic Renewal Cancellation Letter

Introduction

Key Things to Know

1. 1

   ORS 646A.292 states the Legislative Assembly's intent to end ongoing charging of consumer credit or debit cards or third party payment accounts without explicit consent, and an Oregon automatic renewal cancellation letter is the written notice that stops those charges on your own plan. ORS 646A.293 defines automatic renewal as a paid subscription or purchasing agreement automatically renewed at the end of a definite term for a subsequent term, and continuous service as a paid agreement that continues until the consumer cancels.

2. 2

   The statute turns on five offer terms listed in ORS 646A.293(5): that the agreement will continue until you cancel, the cancellation policy, the recurring charges and any amount they will change to, the length of the renewal term or that the service is continuous, and any minimum purchase obligation. Subsection 1(a) of ORS 646A.295 requires those terms to be presented clearly and conspicuously, in visual proximity to the request for consent, or in temporal proximity if the offer is made by voice.

3. 3

   Cancellation is set by ORS 646A.295(2). The seller shall provide a toll-free telephone number, an electronic mail address, a post-office address only when it directly bills you, or another cost-effective, timely and easy-to-use mechanism for cancellation, and that mechanism must be described in the acknowledgment. Because the list is written with an or, the acknowledgment is where to find which route this seller chose, and the letter can quote it back.

4. 4

   Consent comes before the charge. Subsection 1(b) makes it unlawful to charge your credit or debit card or payment account with a third party for an automatic renewal or continuous service without first obtaining your affirmative consent to the agreement containing the offer terms. Under subsection 4, these requirements must be met before the initial order is completed, although the acknowledgment may follow it, and a seller that bills you directly may meet subsections 1(a) and 1(c) in the first billing statement or invoice.

5. 5

   Free trials are handled through the acknowledgment. Subsection 1(c) requires a retainable acknowledgment that includes the offer terms and how to cancel. If the offer includes a free trial, the seller shall also disclose in the acknowledgment how to cancel, and allow you to cancel before you pay for the goods or services. A letter sent during the trial can say that you are using that option.

6. 6

   Changed terms need notice first. Under subsection 3, when there is a material change in the terms of a plan you accepted, the seller shall give you a clear and conspicuous notice of the change and information about how to cancel, in a form you can keep. Subsection 4(b) says that notice must come before the change is implemented, so a letter can record whether it arrived before the new terms applied.

7. 7

   Shipments are covered by subsection 5. Where goods, wares, merchandise or products are sent under a continuous service agreement or an automatic renewal of a purchase without the affirmative consent subsection 1 requires, they shall for all purposes be deemed an unconditional gift. You may use or dispose of them as you see fit, with no obligation to the seller, including any requirement to ship them back or bear the cost of shipping.

Oregon Requirements for Automatic Renewal Cancellation Letter

• Whether the Plan Is Automatic Renewal or Continuous Service Under ORS 646A.293

  State which arrangement applies: an automatic renewal, meaning a paid subscription or purchasing agreement renewed at the end of a definite term for a subsequent term, or continuous service, a paid agreement that continues until you cancel. ORS 646A.293 protects an individual buying for personal, family or household purposes.

• Confirmation the Seller Is Not Exempt Under ORS 646A.295(6)

  Check the seven exemptions before citing the section: Public Utility Commission of Oregon franchised, authorized or regulated services, FCC and FERC regulated services, Insurance Code regulated persons, licensed banks, credit unions, financial institutions and trust companies, service contract sellers, chapter 725 consumer finance companies, and direct-to-home satellite services.

• The Cancellation Mechanism Your Acknowledgment Describes

  ORS 646A.295(2) requires a toll-free telephone number, an electronic mail address, a post-office address on direct billing, or another cost-effective, timely and easy-to-use mechanism, described in the acknowledgment. Quote the route it names, or record that no acknowledgment arrived, and give the date you used it.

• The Offer Terms You Were Shown and When You Consented

  ORS 646A.293(5) lists the five offer terms, and ORS 646A.295(1)(a) and (b) require them to be presented clearly and conspicuously and agreed to before any charge to your card or third party payment account. Record the enrollment date and whether those terms were shown.

• Each Charge by Date and Amount

  List every charge to your credit card, debit card or third party payment account, and mark any made before you gave affirmative consent to the offer terms, which ORS 646A.295(1)(b) prohibits.

• Free Trial Dates and the Acknowledgment's Cancellation Instructions

  If the offer included a free trial, ORS 646A.295(1)(c) requires the acknowledgment to say how to cancel and the seller to allow cancellation before you pay. Give the trial start date and the first charge date.

• Any Material Change and the Date Notice Arrived

  ORS 646A.295(3) requires clear and conspicuous notice of a material change in accepted terms, with retainable cancellation information, and subsection 4(b) requires it before the change is implemented. Record the change date and the notice date.

• Unconsented Shipments and the ORS 646.638 Reference, Stated Factually

  ORS 646A.295(5) deems goods sent without affirmative consent an unconditional gift, with no obligation to ship them back. ORS 646.608(1)(ttt) makes a violation an unlawful practice, and ORS 646.638(1) gives a person with an ascertainable loss from willful use an action for actual damages or $200, whichever is greater. Cite it without predicting an outcome; attorney review is available as an option.