HOUSE BILL 776

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

William "Bill" R. Rehm

AN ACT

RELATING TO CONSUMER PROTECTION; PROVIDING THAT AUTOMATIC RENEWAL TERMS EXCEEDING ONE MONTH IN CONTRACTS FOR SERVICES TO A CONSUMER CONSTITUTE AN UNFAIR PRACTICE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Unfair Practices Act is enacted to read:

     "[NEW MATERIAL] SERVICE CONTRACTS--AUTOMATIC RENEWALS PROHIBITED.--

          A. In any contract for services provided to a residential consumer, it is unlawful to require automatic renewal of the contract for a term greater than one month.

          B. A violation of Subsection A of this section constitutes an unfair or deceptive trade practice pursuant to the Unfair Practices Act."