N.M. Admin. Code § 12.2.11.8

Current through Register Vol. 35, No. 23, December 10, 2024

Section 12.2.11.8 - AUTOMATIC CANCELLATION PROVISIONS

A. It is an unfair or deceptive trade practice for any consumer service contract to contain an automatic renewal provision unless the contract provision is set forth in a clear and conspicuous manner in at least 10 point type and includes the notice requirements and specific procedure by which the consumer may cancel the contract at the end of the initial contract term and the terms of the automatic renewal in the event that notice of cancellation is not given at the end of the initial contract term;

B. It is an unfair or deceptive trade practice for any consumer service contract to contain an automatic renewal provision unless the seller provides the consumer written notice prior to the end of the initial term of the contract or prior to the end of any renewal term of the contract consistent with Subsection (C) of 12.2.11.8 NMAC herein.

C. It is an unfair and deceptive trade practice for any service contract that contains an automatic renewal provision to:

(1) fail to provide written notice to the consumer specifying the procedure by which the consumer may cancel the contract and set forth in a clear and conspicuous manner, in at least 10 point type, and served on the consumer either by certified mail or on the first page of a monthly statement at least 30 days before the last day on which the consumer may give notice of the consumer's intention to terminate the contract, but not sooner than 60 days before the last day on which the consumer may give notice;

(2) fail to allow a minimum of thirty (30) calendar days after the receipt of the seller's notice pursuant to Paragraph (1) of Subsection C of 12.2.11.8 NMAC herein for the consumer to give notice of the consumer's intent to terminate the contract at the end of the initial term or at the end of any additional renewal term;

(3) fail to honor a written notice sent via fax, U.S. mail, email or any other means upon which a consumer can reasonably rely to deliver such notice and postmarked, time stamped or otherwise electronically date stamped within the 30 calendar days provided for the consumer to give notice;

(4) fail to honor a written notice timely sent, mailed, emailed or otherwise transmitted in a manner upon which the consumer can reasonably rely to deliver such notice but received by the seller after the expiration of the notice period;

(5) fail to allow termination of the contract at the end of the initial term or at the end of any additional renewal term without additional cost or penalty.

N.M. Admin. Code § 12.2.11.8

12.2.11.8 NMAC - N, 9/15/09