A BILL TO BE ENTITLED
AN ACT to prohibit automatic contract renewals in consumer or business contracts.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 75‑41 reads as rewritten:
"§ 75‑41.  Contracts with automatic renewal clauses.
(a)	A person, firm, or corporation engaged in commerce that sells, leases, or offers to sell or lease, any products or services to a consumer or business pursuant to a contract shall not include in such a contract any term that has the effect of causing the contract to be automatically renewed at the expiration of the contract's term. 
					(d)	This section does not apply to insurers licensed under Chapter 58 of the General Statutes, or to banks, trust companies, credit card companies, savings and loan associations, savings banks, or credit unions licensed or organized under the laws of any state or the United States, or any foreign bank maintaining a branch or agency licensed under the laws of the United States, or any subsidiary or affiliate thereof.
(e)	A violation of this section renders the automatic renewal clause void and unenforceable and is an unfair and deceptive trade practice under G.S. 75‑1.1."
SECTION 2.  This act is effective when it becomes law and applies to all contracts regardless of when they are entered into.