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New Contract Requirements in Louisiana

At some point in time, almost everyone enters into a contract that includes an automatic renewal clause. Most cell phone contracts are automatically renewed without any action by the owner. So are equipment leases, Internet service provider contracts, pest extermination contracts, and many more. In most of these the customer is the party obligated to take some action to prevent the renewal of the contract, such as sending notice to the vendor or provider of services that the customer wants to terminate the contract.

Recently, Louisiana enacted legislation to regulate automatic renewal clauses in contracts to provide that any contract that automatically renews if the consumer fails to cancel it must disclose the automatic renewal clause clearly and conspicuously and include clear and conspicuous language describing how to cancel the contract.

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