Bill > S2253

This bill aims to strengthen consumer protection against negative option billing practices across all media, including the internet. A negative option is a billing method where consumers are automatically charged for goods or services unless they take specific action to cancel. The bill requires merchants to clearly disclose all contract terms before charging consumers, obtain express informed consent (which means an affirmative action like clicking a confirmation button), and provide a simple cancellation mechanism. For free-to-pay conversion contracts (where consumers get something free initially and then are charged later), merchants must provide detailed notifications about pricing, including introductory and recurring costs. The bill mandates that merchants cannot automatically renew contracts for longer than the initial period without obtaining fresh consent, must provide regular notifications about contract terms, and must offer an easy way to cancel, either online or through the same method the contract was originally entered. The Federal Trade Commission (FTC) will enforce these rules, with additional enforcement power granted to state attorneys general. The law will apply to contracts entered into or amended one year after its enactment, and it does not preempt state laws that provide additional consumer protections.

Transportation and Infrastructure

https://www.congress.gov/bill/119th-congress/senate-bill/2253/all-info