Bill > HR4365

This bill establishes comprehensive consumer protections for automatic renewal and free-to-pay conversion contracts, requiring businesses to provide clear disclosures, notification, and easy cancellation mechanisms. Specifically, companies must notify consumers at least 7 days before any automatic contract renewal, provide multiple cancellation options (including online and toll-free methods), and obtain express informed consent annually for continued service. For free trials, businesses must notify consumers before charging them and get explicit consent before converting to a paid service. The bill also prohibits using "dark patterns" (manipulative user interfaces that undermine user choice) to obtain consent and allows consumers to terminate contracts if these requirements are not met, with mandatory refunds for violations. The Federal Trade Commission (FTC) will enforce these regulations, treating violations as unfair or deceptive practices and having the authority to create additional rules to prevent consumer harm. The bill defines key terms like "consumer," "dark patterns," and "simply cancel" and will take effect one year after enactment, providing businesses time to adjust their practices to comply with the new consumer protection standards.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/4365/all-info