Regulations for free products or trials and phasing out sales tax on food introduced this week

Among introductions in the Alabama Legislature this week were:

  • SB315 by Sen. Andrew Jones, R-Centre, and HB506 by Rep. Ginny Shaver, R-Leesburg, which gives consumers the right to recover the purchase price plus a 10 penalty of a collectible item purchased based on a representation that it is authentic, if the consumer offers “substantial evidence” within three years of purchase that the item is not authentic. The bills have been assigned to their respective Judiciary committees.
  • HB454 by Rep. Jamie Kiel, R-Russellville, which would require a company offering a free product or service trial to include in that offer a clear and conspicuous explanation of the price that will be charged after the trial period ends or the manner in which the subscription or purchasing agreement pricing will change upon the conclusion of the trial period. Among other provisions, it makes it illegal to charge for an automatic renewal or continuous service without first obtaining the consumer’s affirmative consent and requires a toll-free number, email address, postal address or other “easy-to-use mechanism” for cancellations. The bill has been assigned to the House Commerce and Small Business Committee.
  • HB442 by Rep. Mary Moore, D-Birmingham, which would phase out the 4% state sales and use taxes on food by reducing the state tax by one percentage point over a four-part reduction schedule beginning Oct. 1. Food would be fully exempt from Alabama sales and use taxes by Oct. 1 2025, under this plan. The bill has been assigned to the House Ways and Means Education Committee.

Legislation that has progressed beyond an introduction includes:

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