The future of automatic bill renewals in Ore.

SALEM, Ore. – From Internet service to gym memberships, Oregon state lawmakers are using the state's Special Session to try to stop companies from automatically renewing contracts without your consent.   

Senator Suzanne Bonamici wants to pass a new state law requiring companies send consumers a notice when an "automatic contract renewal" is about to kick-in. And requiring them to be "up front" about renewals and "early termination fees." The proposed plan.

When Theresa McReary canceled her Qwest home phone service she says the company "mistakenly" canceled her Internet service. When Qwest re-connected her to the World Wide Web, "they said that reinstating the Internet service, that they had terminated in error, [created] a new contract."

McReary said she never agreed to a "new" contract – and had already fulfilled the terms of an earlier 2-year Internet agreement. That's  why she was furious that, when she went to change Internet providers, Qwest hit her with a $200 "contract termination fee."

"Contracts are usually bilateral - both parties have to agree to it," McReary said. "And they just ... did things on their own. We had no idea what they were doing, and it was really frustrating and confusing."

For Sen. Bonamici, these are exactly the constituents she's fighting for.  "People feel like they don't have to pull out a magnifying glass and read minuscule print. They don't want to have to do that."

A lobbyist for Oregon cable companies, Mike Dewey, said his clients are against the proposed law. He says many consumers want their contracts to be renewed without hassle. "What's going to happen if somebody's on vacation, and they're out of the country, and they do want to renew?"

Nonetheless, Bonamici is pushing legislation that would require companies to notify consumers when their contract is about to automatically renew. She says this will give customers the informed option to opt out, while they can.

She also wants companies to clearly disclose the terms of the automatic renewal and any early termination fees.

In Theresa's case, a Qwest spokesman told us they "always work with customers to ensure they understand the terms of the service and to resolve any problems they may have."