119-hr4365

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4365 Introduced in House

    (IH) ]

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119th CONGRESS
 1st Session
 H. R. 4365

 To provide for automatic renewal protections, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 July 14, 2025

 Ms. Clarke of New York (for herself, Mr. Correa, Ms. Matsui, and Ms. 
Kelly of Illinois) introduced the following bill; which was referred to 
 the Committee on Energy and Commerce

_______________________________________________________________________

 A BILL

 To provide for automatic renewal protections, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Consumer Online Payment Transparency 
and Integrity Act''.

SEC. 2. AUTOMATIC RENEWAL PROTECTIONS.

    (a) In General.--A person who sells a good or service to a consumer 
pursuant to a contract that includes a free-to-pay conversion or 
negative option feature or any other automatic renewal provision shall 
disclose such feature or provision and the cancellation procedure 
clearly and conspicuously in the contract.

    (b) Automatic Renewal.--A person who sells a good or service to a 
consumer pursuant to a contract that will automatically renew unless 
the consumer cancels the contract shall--

    (1) notify, in the same manner as the consumer entered into 
 the contract, the consumer of--
        (A) the first automatic renewal (and of each 
 automatic renewal thereafter) not less than 7 days (or 
 a longer time period as determined appropriate by the 
 Commission) before the commencement of the renewal 
 period; and
        (B) how the consumer may simply cancel the 
 contract, which shall include--
            (i) an online mechanism for cancellation 
 provided by the person; and
            (ii) a toll-free telephone number, email 
 address, postal mail address, or other cost-
 effective, timely, and easy-to-use mechanism 
 for cancellation provided by the person;

    (2) on an annual basis and notwithstanding the consumer's 
 consent to the initial term (or any subsequent term), obtain 
 the consumer's express informed consent to renew the contract 
 before charging the consumer for the automatic renewal; and

    (3) notwithstanding the consumer's consent to the initial 
 term (or any subsequent term), in the event that the person has 
 actual knowledge that the consumer has not used the good or 
 service provided under the contract for a period of 6 
 consecutive months since the consumer's most recent express 
 informed consent--
        (A) obtain the consumer's express informed consent 
 to the automatic renewal before charging the consumer 
 for the automatic renewal; and
        (B) notify the consumer that the consumer has a 
 right to terminate the contract and receive a prorated 
 refund for the remaining portion of the contract.
            (c) Free Trial.--A person who sells a good or service to a consumer 
pursuant to a contract that includes a free-to-pay conversion feature 
with a free trial period, shall--

    (1) notify, in the same manner as the consumer entered into 
 the contract, the consumer--
        (A) that the consumer will be charged for the good 
 or service not less than 7 days (or a longer time 
 period as determined appropriate by the Commission) 
 before the expiration of the free trial period; and
        (B) of how the consumer may simply cancel the 
 contract, which shall include--
            (i) an online mechanism for cancellation 
 provided by the person; and
            (ii) a toll-free telephone number, email 
 address, postal mail address, or other cost-
 effective, timely, and easy-to-use mechanism 
 for cancellation provided by the person; and

    (2) notwithstanding the consumer's consent to the free 
 trial, obtain the consumer's express informed consent to the 
 applicable charge for the good or service not less than 7 days 
 (or a longer time period as determined appropriate by the 
 Commission) before the expiration of the free trial period and 
 before charging the consumer for the automatic renewal.
            (d) Automatic Renewal Void.--In the case of a violation of 
subsection

    (a) ,

    (b) , or
            (c) --

    (1) the applicable automatic renewal provision shall be 
 void, and the contract shall terminate upon the occurrence of 
 such violation; and

    (2) the person who violated subsection

    (a) ,

    (b) , or
            (c) shall provide the consumer with a refund for all amounts paid 
 by the consumer due to such violation.

    (e) Dark Patterns.--With respect to a contract that includes a 
free-to-pay conversion or negative option feature or any other 
automatic renewal provision, a consumer's consent obtained through the 
use of dark patterns shall not be considered express informed consent.

    (f) Exemptions.--The requirements under subsections

    (a) ,

    (b) ,
            (c) , 
and
            (d) shall not apply to a service contract or any other person or 
contract determined appropriate by the Commission.

    (g) Effective Date.--The requirements under this section shall take 
effect on the date that is 1 year after the date of enactment of this 
Act.

SEC. 3. ENFORCEMENT BY THE COMMISSION.

    (a) Unfair or Deceptive Acts or Practices.--A violation of 

section 2 or a rule promulgated under this Act shall be treated as a violation 
of a rule defining an unfair or a deceptive act or practice under 

section 18

    (a)

    (1)
        (B) of the Federal Trade Commission Act (15 U.S.C. 
57a

    (a)

    (1)
        (B) ).

    (b) Powers of the Commission.--

    (1) In general.--The Commission shall enforce this Act in 
 the same manner, by the same means, and with the same 
 jurisdiction, powers, and duties as though all applicable terms 
 and provisions of the Federal Trade Commission Act (15 U.S.C. 
 41 et seq.) were incorporated into and made a part of this Act.

    (2) Privileges and immunities.--Any person who violates 
 

section 2 or a rule promulgated under this Act shall be subject 
 to the penalties and entitled to the privileges and immunities 
 provided in the Federal Trade Commission Act (15 U.S.C. 41 et 
 seq.).

    (3) Authority preserved.--Nothing in this Act shall be 
 construed to limit the authority of the Commission under any 
 other provision of law.

    (4) Rulemaking.--The Commission shall promulgate in 
 accordance with 

section 553 of title 5, United States Code, 
 such rules as may be necessary to carry out this Act, or to 
 prevent unfair or deceptive acts or practices regarding free 
 trials, automatic renewals, or other contracts under which a 
 consumer's silence or failure to take an affirmative action to 
 reject goods or services or to cancel an agreement is 
 interpreted by the seller as acceptance of the offer.

SEC. 4. DEFINITIONS.

 In this Act:

    (1) Commission.--The term ``Commission'' means the Federal 
 Trade Commission.

    (2) Consumer.--The term ``consumer'' means any person who 
 seeks or acquires, by purchase or lease, any goods or services.

    (3) Dark patterns.--The term ``dark patterns'' means a user 
 interface that has the substantial effect of subverting or 
 impairing user autonomy, decision making, or choice.

    (4) Free-to-pay conversion.--The term ``free-to-pay 
 conversion'' has the meaning given that term in 

section 310.2 
 of title 16, Code of Federal Regulations.

    (5) Negative option feature.--The term ``negative option 
 feature'' has the meaning given that term in 

section 310.2 of 
 title 16, Code of Federal Regulations.

    (6) Service contract.--The term ``service contract'' means 
 a contract or agreement for a separately stated consideration 
 for any duration--
        (A) to perform the repair, replacement, or 
 maintenance of property or indemnification for service 
 repair, replacement, or maintenance for the operational 
 or structural failure of any motor vehicle or 
 residential or other property due to a defect in 
 materials, workmanship, accidental damage from 
 handling, or normal wear and tear; or
        (B) to indemnify for the same, including towing, 
 rental, or emergency road service or road hazard 
 protection, and which may provide for the service 
 repair, replacement, or maintenance of property for 
 damage resulting from power surges or interruption.

    (7) Simply cancel.--The term ``simply cancel'', with 
 respect to a contract, means the mechanism for cancellation of 
 such contract is at least as easy to use as the mechanism the 
 consumer used to consent to such contract.
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