AN ACT to amend Tennessee Code Annotated, Title 7; Title 47 and Title 65, relative to consumer billing.
Summary
SB0041 amends Tennessee consumer protection law to regulate how service providers may bill consumers after a contract for covered services is terminated. Covered services include telephone, cable television, internet, broadband services, or combinations of those services. Beginning July 1, 2025, the bill limits post-termination charges based on when the consumer ends the agreement within a billing cycle.
If termination occurs in the first half of a billing cycle, the provider may bill only for the remainder of that cycle and may not bill for any later cycle. If termination occurs in the second half of the cycle, the provider may bill for the remainder of that cycle and up to one additional billing cycle. The bill also makes clear that providers may still require a minimum contract term, so it does not eliminate early-termination or minimum-duration arrangements altogether.
Impact
The bill adds a new section to Title 47, Chapter 18, Part 1 of the Tennessee Code and expands the Tennessee Consumer Protection Act of 1977 to treat violations of the new billing rule as unfair or deceptive acts or practices. It also adds a corresponding subdivision to the Act’s prohibited practices list in Section 47-18-104(b). The practical effect is to limit how long telephone, cable, internet, and broadband providers can continue billing after a customer cancels service, while preserving providers’ ability to set minimum contract durations.
Sentiment
The bill appears to have broad bipartisan support and little visible opposition. It passed the Senate Commerce and Labor Committee unanimously and later cleared floor votes by wide margins, including a 33-0 motion to adopt and 97-0 passage on third consideration. The voting history suggests the measure was viewed as a consumer-protection bill with straightforward billing fairness provisions.
Contention
No major controversy is evident in the available record. The main policy issue is the balance between consumer billing fairness and provider contract rights: the bill restricts post-cancellation billing but expressly allows minimum-duration terms in service agreements. Any potential concern would likely come from service providers over reduced billing flexibility, while consumer advocates would likely support the clearer limits on charges after termination.