Louisiana’s Click-to-Cancel Law Starts January 1. Most Independent Martial Arts Schools Appear to Be Exempt

Louisiana’s new automatic renewal law, Act 830 of 2026 (House Bill 750), takes effect January 1, 2027. It requires clear disclosure, affirmative consent, an easy way to cancel and advance notice before some renewals. Its small-business exemption is unusually broad: on the statute’s wording it reaches any business with fewer than 50 employees or less than $5 million in annual revenue, which describes nearly every independent martial arts school in the state. Multi-unit operators and franchise systems should read it closely, and every Louisiana school is still bound by the state’s separate health club contract law.

What does Act 830 require?

Signed June 9, 2026, and sponsored by Rep. Vincent Cox III, the act adds R.S. 51:3301 through 3305. For covered businesses selling automatically renewing contracts, it requires:

• clear and conspicuous disclosure of the renewal terms near the point of purchase;
• the customer’s affirmative consent before any charge;
• a confirmation the customer can keep, including how to cancel;
• no “dark patterns” that obscure or steer the customer’s choice;
• consent records kept for one year;
• an easy, cost-effective way to cancel;
• notice of material changes to terms; and
• notice at least three days before renewal in certain cases, including terms of 12 months or more, material changes and free-trial conversions.

The Attorney General enforces the act, with civil penalties of up to $500 per violation. A business gets written notice and 30 days to fix a violation, except for willful or repeated ones. Violations are also deceptive trade practices, though private plaintiffs recover actual damages only, with attorney fees available only for willful violations. A good-faith safe harbor covers technical violations that cause no material harm.

Who is exempt?

The enrolled text exempts “a person with fewer than fifty employees or with an annual gross revenue of less than five million dollars.” The word is “or,” not “and,” so a business meeting either test qualifies. Two sections address it: §3303(E)(5) excuses such businesses from the renewal-notice rules if they meet the disclosure, consent and cancellation rules, and §3305 says the act “shall not apply” to them at all. The two provisions overlap and are not perfectly consistent, but on either reading most single-location schools fall outside the bulk of the law.

Who may not be exempt: a franchisor or multi-location operator with 50 or more employees across its system and $5 million or more in revenue. If your billing runs through a franchisor’s system, ask whose obligation the disclosures are.

What still applies to every Louisiana school?

Louisiana’s physical fitness services law, R.S. 51:1576 and following, covers “athletic or sport clubs” and studios and likely reaches martial arts schools. For prepaid or credit contracts longer than one month, it requires a written contract with a bold “CUSTOMER’S RIGHT TO CANCEL” notice, the right to cancel by midnight of the third business day with a refund within 15 days, and the right to cancel if the facility closes or moves more than 10 driving miles away. Our Louisiana legal guide covers these rules.

For the wider picture, see Connecticut’s Click-to-Cancel Law Is Now in Force, and the FTC Is Rewriting Its Own.

Frequently asked questions

When does Louisiana’s click-to-cancel law take effect?

January 1, 2027. It is Act 830 of 2026, House Bill 750, signed June 9, 2026.

Does it apply to small martial arts schools?

Mostly no. The act exempts businesses with fewer than 50 employees or less than $5 million in annual gross revenue.

What are the penalties?

Up to $500 per violation, enforced by the Attorney General, with 30 days to cure most violations after written notice.

Do Louisiana schools have other contract rules?

Yes. The physical fitness services law requires a written contract, a three-day cancellation right and a refund within 15 days for prepaid or credit contracts longer than one month.