Section 45.45.920. Free trial period.

   (a) Notwithstanding a provision in AS 45.02 to the contrary, a seller may not offer, promote, advertise, or provide a consumer with goods or services for a free trial period unless the seller complies with all the conditions of this section.
   (b) When offering, promoting, or advertising consumer goods or services for a free trial period, a seller shall clearly and conspicuously disclose all material terms and conditions of the free trial period, including
        (1) all material restrictions, limitations, terms, and conditions of the free trial period, including any obligation by the consumer to purchase a minimum quantity of goods or services after the free trial period ends;
        (2) a description of all charges that will be imposed after the free trial period ends, including whether billing will include charges for shipping and handling and, if the offer, promotion, or advertising is made by telephone, the amount of the shipping and handling charges;
        (3) a description of the consumer's right to cancel; and
        (4) any other obligations the consumer assumes by accepting or using the goods or services during the free trial period.
   (c) Before providing goods or services to a consumer for a free trial period, a seller shall obtain express verifiable consent from the consumer to the free trial period.
   (d) A consumer who receives goods or services for a free trial period may
        (1) at any time during the free trial period, return the goods or cancel the services without further obligation to the seller;
        (2) within 30 days after the free trial period ends, return the goods or cancel the services for a full refund of the charges, if any, or a partial refund for the unused portion of the goods or services.
   (e) This section does not apply to a seller who provides goods or services to a consumer for free if the consumer does not assume any obligation by accepting the free goods or services.
   (f) This section does not apply to
        (1) a telephonic seller who is registered under AS 45.63 and who complies with AS 45.63; or
        (2) a prenotification negative option plan that is regulated by 16 C.F.R. Part 425 and that complies with 16 C.F.R. Part 425.
   (g) In this section, "seller" means a person who engages in the business of selling, contracting for the sale of, arranging for the sale of, or arranging for a free trial period for goods or services.

Authorities

45.50.471

Notes

Recent Bills that will modify this

SB 35 2015 REVISOR'S BILL

References

AS 45.50.471 Unlawful acts and practices.

History

(Sec. 1 ch 57 SLA 2004; am Sec. 45 ch 22 SLA 2015)