Automatic Renewal Contracts in Utah: What the Seller Must Tell You and What Happens If They Don't
General information, not legal advice. Read the full disclaimer.
Short answer: Utah Code Title 15, Chapter 10 limits automatic renewal provisions in service contracts. A service contract may not contain an automatic renewal provision unless the seller gives the consumer written notice of it. For contracts executed on or after July 1, 2011 with a renewal period longer than 12 months, the notice must be prominently displayed on the first page of the contract; in addition, the seller must send a renewal notice personally, by certified mail, or prominently on the first page of a monthly statement, no later than 30 days and no sooner than 90 days before the last day you may give notice that you want to end the contract, in clear language and easy-to-read type (§ 15-10-201). If the seller doesn't comply, the automatic renewal provision is void and unconscionable as a matter of public policy and the contract renews only on a month-to-month basis (§ 15-10-202). A failure to comply is also listed as a deceptive practice under the Consumer Sales Practices Act (§ 13-11-4(2)(x)).
Who this guide is for
Utahns stuck in a gym, alarm, internet, pest control, warranty or similar service contract that "renewed" for another year, and anyone who wants to know when to cancel. The statute covers service contracts; it doesn't cover every subscription, and federal rules and other state laws may apply to online subscriptions and cards on file. General information, not legal advice.
What the seller must do (§ 15-10-201)
- Disclose the renewal clause on page one of the contract if the renewal term is longer than 12 months (for contracts signed on or after July 1, 2011).
- Send a reminder notice by one of three methods: delivered personally, by certified mail, or prominently on the first page of a monthly statement.
- Send it in the window: not more than 90 and not less than 30 calendar days before your last day to give notice that you don't want to renew. A seller may not send the required notice at other times.
- Use clear, readable language and type.
If the seller didn't follow the rules (§ 15-10-202)
- The auto-renewal clause is void.
- The contract renews month to month instead of for another full term, so you can usually cancel the following month. (The statute applies to business consumers only for contracts executed on or after July 1, 2011.)
Practical steps
- Find your contract and note the renewal date and cancellation notice deadline.
- Check whether you got the required notices. Keep the envelope or statement.
- Cancel in writing and keep proof (certified mail receipt or email).
- If the seller says you're locked in, tell them you rely on § 15-10-202, then ask for the month-to-month terms in writing.
- File a complaint with the Utah Division of Consumer Protection (801-530-6601) if the seller refuses. See The Utah Consumer Sales Practices Act.
- Dispute the charge with your card issuer or bank if you were charged after a valid cancellation, and keep records. See Utah Small Claims in Consumer Disputes for recovery options.
Frequently asked questions
Can a Utah gym or alarm company auto-renew my contract?
Only if it follows the notice rules; otherwise the renewal clause is void and the contract goes month to month.
When must the seller send the renewal notice?
Between 90 and 30 days before the last day you can give notice that you want to end the contract.
Does this apply to all subscriptions?
The statute covers service contracts. Other subscriptions may be covered by different laws or by the Consumer Sales Practices Act.
How do I report a violation?
Utah Division of Consumer Protection, 801-530-6601.