Rep. Stevens files bill in North Carolina House on consumer contract renewals

A new bill filed by State Rep. Sarah Stevens in the North Carolina House seeks to enhance transparency and consumer protections regarding automatic contract renewals, according to the North Carolina State House.

The bill, filed as HB 188 on Feb. 24 during the 2025 regular session, was formally listed with the short title: ‘Automatic Renewal of Contracts.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends requirements for consumer contracts with automatic renewal clauses, set to be effective Jan. 1, 2026. It mandates clear and conspicuous disclosure of automatic renewal terms, including initial term length, renewal period, and associated charges. Consumers must acknowledge such terms by initialing a designated space in contracts exceeding one month. For renewals lasting 60 days or more, companies must notify consumers 15 to 60 days before renewal via agreed communication methods. Exemptions include insurers, banks, and entities regulated by specific state or federal authorities. The bill is applicable to contracts initiated from Jan. 1, 2026.

Of the two sponsors of this bill, Keith Kidwell proposed the most bills (18) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Stevens graduated from the University of North Carolina at Greensboro in 1981 with a BS and again in 1986 from Campbell University Norman Adrian Wiggins School of Law with a JD.

Stevens, a Republican, was elected to the North Carolina State House in 2009 to represent the state’s 90th House district, replacing previous state representative Jim Harrell.