Bill > S2266

This bill, known as the Consumer Online Payment Transparency and Integrity Act, establishes comprehensive protections for consumers against deceptive automatic renewal practices. The legislation requires businesses to clearly disclose automatic renewal or free-to-pay conversion features in contracts and provide transparent cancellation procedures. Companies must notify consumers at least 7 days before automatic renewals, offering multiple cancellation methods including online, telephone, and email options. Businesses must obtain express informed consent annually for contract renewals and additionally must seek consent if a consumer has not used the service for 6 consecutive months. For free trials, companies must notify consumers before charging them and obtain explicit consent before converting to paid services. The bill prohibits using "dark patterns" (manipulative user interfaces) to obtain consumer consent and provides that any violation of these provisions will render the automatic renewal void, requiring a full refund to the consumer. The Federal Trade Commission (FTC) will enforce these regulations, treating violations as unfair or deceptive practices, with the ability to create additional rules to prevent such practices. The law would take effect one year after enactment and applies broadly to most consumer contracts, with some specific exemptions for certain service contracts to be determined by the FTC.

Transportation and Infrastructure

https://www.congress.gov/bill/119th-congress/senate-bill/2266/all-info