119-s2253

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2253 Introduced in Senate

    (IS) ]

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119th CONGRESS
 1st Session
 S. 2253

To increase consumer protection with respect to negative options in all 
 media, including on the internet, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 10, 2025

Mr. Schatz (for himself and Mr. Kennedy) introduced the following bill; 
 which was read twice and referred to the Committee on Commerce, 
 Science, and Transportation

_______________________________________________________________________

 A BILL

To increase consumer protection with respect to negative options in all 
 media, including on the internet, 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 ``Unsubscribe Act of 2025''.

SEC. 2. INCREASED CONSUMER PROTECTION WITH RESPECT TO NEGATIVE OPTIONS.

    (a) Disclosure of Negative Options.--It shall be unlawful for any 
merchant of record to charge or attempt to charge a credit card, debit 
card, bank account, or other financial account of any consumer, or 
otherwise receive payment from any consumer, through a negative option, 
unless the merchant of record clearly and conspicuously discloses all 
material terms of the contract involved before receiving payment or 
charging the consumer, or otherwise receiving payment, through such 
negative option.

    (b) Express Informed Consent for Negative Options.--

    (1) Requirement.--It shall be unlawful for any merchant of 
 record to charge or attempt to charge a credit card, debit 
 card, bank account, or other financial account of any consumer, 
 or otherwise receive payment from any consumer, through a 
 negative option, unless the merchant of record obtains the 
 express informed consent of the consumer before receiving 
 payment or charging the consumer, or otherwise receiving 
 payment, through such negative option.

    (2) Duration.--A merchant of record shall keep or maintain 
 verification of the express informed consent obtained pursuant 
 to paragraph

    (1) for not fewer than 3 years, unless such 
 merchant of record demonstrates by a preponderance of the 
 evidence that the merchant of record uses processes that ensure 
 a consumer may not technologically complete a transaction 
 without such express informed consent.
            (c) Term Limitation for Negative Option Contracts.--After the 
expiration of a preliminary period, it shall be unlawful for any 
merchant of record to automatically renew or otherwise continue a 
negative option contract with any consumer for a period that is greater 
than the length of the preliminary period, unless such merchant of 
record, at the time of such expiration, obtains the express informed 
consent of the consumer to renew or otherwise continue such negative 
option contract.
            (d) Cancellation of Negative Option Contracts.--

    (1) Online merchants.--In the case of a negative option 
 contract that is entered into electronically, it shall be 
 unlawful for any merchant of record to enter into such negative 
 option contract with any consumer unless such merchant of 
 record provides to the consumer a simple mechanism, including a 
 direct link to an electronic form, that enables the consumer to 
 submit a request to cancel such negative option contract 
 without requiring the consumer to take additional steps by any 
 means other than electronically.

    (2) Other merchants.--In the case of a negative option 
 contract that is entered into through means other than 
 electronically, it shall be unlawful for any merchant of record 
 to enter into such negative option contract with any consumer 
 unless such negative option contract provides the consumer with 
 a simple mechanism for cancellation, in the same manner, and by 
 the same means, as such negative option contract was entered 
 into, or, if not practicable, through some other simple 
 mechanism for cancellation.

    (e) Requirements for Free-To-Pay Conversion Contracts.--It shall be 
unlawful for any merchant of record to charge or attempt to charge a 
credit card, debit card, bank account, or other financial account of 
any consumer for any good or service sold under a free-to-pay 
conversion contract, unless each of the following is met:

    (1) Before completing the financial transaction, or 
 otherwise receiving payment, the merchant of record provides 
 the consumer with a notification of the terms of the negative 
 option contract and obtains the express informed consent of the 
 consumer to such terms, including the following terms:
        (A) For an introductory period, the consumer will 
 receive the good or service at no cost or for a 
 discounted cost.
        (B) The amount the consumer will be charged or 
 otherwise required to pay for the introductory period.
            (C) The amount the consumer will be charged or 
 otherwise required to pay, on a recurring basis, 
 starting with the first financial transaction after the 
 introductory period.
            (D) The total cost (or range of costs) the consumer 
 will be charged or otherwise required to pay through 
 the entire term of such contract (if such term is less 
 than 12 months) or cost information that enables the 
 consumer to determine the total cost for the subsequent 
 12-month period, to the extent known.

    (2) Before the first charge, payment, or price increase 
 after the introductory period, the merchant of record provides 
 notification to the consumer about the upcoming charge, 
 payment, or increase and provides the consumer with--
        (A) the terms of the negative option contract, 
 including the length of time required for the merchant 
 of record to complete any cancellation request; and
        (B) direct access to information about the simple 
 mechanism for cancellation.

    (f) Other Notification Requirements for Negative Option 
Contracts.--

    (1) General notification and access.--With respect to any 
 negative option contract entered into by a merchant of record 
 and a consumer, the merchant of record, at regular intervals as 
 determined by the Commission (but not less frequently than 
 annually) while such negative option contract remains in 
 effect, shall provide the consumer with--
        (A) a notification of the terms of such negative 
 option contract; and
        (B) direct access to information about the simple 
 mechanism for cancellation.

    (2) Additional notification and access.--If a negative 
 option contract specifies a period of time during which the 
 merchant of record shall complete a cancellation request, not 
 fewer than 2 but not more than 7 days before the last day on 
 which the consumer may cancel such negative option contract 
 without incurring additional charges, the merchant of record 
 shall provide the consumer with the notification and access 
 required by paragraph

    (1) .

SEC. 3. ENFORCEMENT.

    (a) Enforcement by the Federal Trade Commission.--

    (1) Unfair or deceptive acts or practices.--A violation of 
 this Act or a regulation promulgated thereunder shall be 
 treated as a violation of a rule defining an unfair or 
 deceptive act or practice under 

section 18

    (a)

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

    (a)

    (1)
        (B) ).

    (2) Powers of the commission.--
        (A) 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.
        (B) Privileges and immunities.--Any person who 
 violates this Act or a regulation promulgated 
 thereunder 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.).
            (C) Authority preserved.--Nothing in this Act shall 
 be construed to limit the authority of the Commission 
 under any other provision of law.
            (D) 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.

    (b) Enforcement by States.--

    (1) In general.--If the attorney general of a State, or an 
 official or agency of a State, has reason to believe that an 
 interest of the residents of the State has been or is being 
 threatened or adversely affected by a practice that violates 
 this Act, the State may bring a civil action on behalf of the 
 residents of the State in an appropriate district court of the 
 United States to obtain appropriate relief.

    (2) Rights of the commission.--
        (A) Notice to the commission.--
            (i) In general.--Except as provided in 
 clause
            (iii) , an attorney general, official, or 
 agency of a State, before initiating a civil 
 action under paragraph

    (1) , shall provide a 
 written notice to the Commission that the 
 attorney general, official, or agency intends 
 to bring such civil action.
            (ii) Contents.--The notice required by 
 clause
            (i) shall include a copy of the 
 complaint to be filed to initiate the civil 
 action.
            (iii) Exception.--If it is not feasible for 
 an attorney general, official, or agency of a 
 State to provide the notice required by clause
            (i) before initiating a civil action under 
 paragraph

    (1) , the attorney general, official, 
 or agency shall provide such notice to the 
 Commission immediately upon instituting the 
 civil action.
        (B) Intervention by the commission.--The Commission 
 may--
            (i) intervene in any civil action brought 
 by an attorney general, official, or agency of 
 a State under paragraph

    (1) ; and
            (ii) upon intervening--
            (I) be heard on all matters arising 
 in the civil action; and
            (II) appeal a decision in the civil 
 action.
            (C) Limitation on state action while federal action 
 is pending.--If the Commission or the Attorney General 
 of the United States has instituted a civil action for 
 violation of this Act (referred to in this subparagraph 
 as the ``Federal action''), no State attorney general, 
 official, or agency may bring an action under paragraph

    (1) during the pendency of the Federal action against 
 any defendant named in the complaint in the Federal 
 action for any violation of such Act alleged in such 
 complaint.

    (3) Rule of construction.--Nothing in this subsection may 
 be construed to prevent an attorney general, official, or 
 agency of a State from exercising the powers conferred on the 
 attorney general, official, or agency by the laws of the State 
 to conduct investigations, to administer oaths or affirmations, 
 or to compel the attendance of witnesses or the production of 
 documentary or other evidence.

SEC. 4. PREEMPTION OF DIRECTLY CONFLICTING STATE LAWS.

    (a) In General.--Nothing in this Act may be construed to preempt, 
displace, or supplant any State law, except to the extent that a 
provision of State law conflicts with a provision of this Act, and then 
only to the extent of the conflict.

    (b) Greater Protection Under State Law.--For purposes of this 
section, a provision of State law does not conflict with a provision of 
this Act if such provision of State law provides additional protections 
to consumers protected under this Act.
            (c) Conflicting Time Frames.--Any difference between Federal and 
State law in the time frame in which a requirement imposed on a person 
shall be met shall be considered a conflict for purposes of subsection

    (a) .

SEC. 5. DEFINITIONS.

 In this Act:

    (1) Automatic renewal contract.--The term ``automatic 
 renewal contract'' means a contract between any merchant of 
 record and any consumer for the sale of goods or services that 
 is automatically renewed after a preliminary period, unless the 
 consumer instructs otherwise.

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

    (3) Continuity plan contract.--The term ``continuity plan 
 contract'' means a contract between any merchant of record and 
 any consumer under which the consumer agrees to pay for 
 periodic shipments of goods or the provision of services, 
 unless the consumer instructs otherwise.

    (4) Express informed consent.--
        (A) In general.--The term ``express informed 
 consent'' means, with respect to an offer or agreement 
 for the sale of goods or services that includes a 
 negative option, an affirmative action taken by a 
 consumer, including clicking on a confirmation button 
 or checking a box, that--
            (i) indicates the unambiguous consent of 
 the consumer to the negative option; and
            (ii) is separate and apart from any action 
 taken by the consumer to indicate the initial 
 consent of the consumer to all of the material 
 terms of the offer or agreement (including to 
 be charged for the preliminary period), but may 
 occur at the same time as such initial consent.
        (B) Exclusions.--The term ``express informed 
 consent'' shall not include--
            (i) consent that is inferred through the 
 inactivity or silence of a consumer or the use 
 of pre-checked boxes with respect to an initial 
 charge or any recurring charge; or
            (ii) consent obtained through a user 
 interface designed or manipulated to have the 
 substantial effect of subverting or impairing 
 user autonomy, decision-making, or choice.

    (5) Free-to-pay conversion contract.--The term ``free-to-
 pay conversion contract'' means a contract for the sale of 
 goods or services between any merchant of record and any 
 consumer that includes an introductory period.

    (6) Introductory period.--The term ``introductory period'' 
 means a preliminary period of a contract for the sale of goods 
 or services where--
        (A) during such period, the consumer receives a 
 good or service at no charge or for a discounted cost; 
 and
        (B) at the expiration of such period, the amount 
 the consumer will be charged or otherwise be required 
 to pay for the good or service is increased.

    (7) Merchant of record.--The term ``merchant of record'' 
 means a person who enters into a financial contract with a 
 consumer.

    (8) Negative option.--The term ``negative option'' means a 
 provision of an offer or agreement for the sale of goods or 
 services under which the silence of a consumer or failure by a 
 consumer to take an affirmative action to reject the goods or 
 services or to cancel the agreement is interpreted by the 
 seller as acceptance of the offer or renewal of the agreement.

    (9) Negative option contract.--The term ``negative option 
 contract'' means a contract that includes a negative option, 
 including--
        (A) an automatic renewal contract;
        (B) a continuity plan contract;
            (C) a free-to-pay conversion contract;
            (D) a pre-notification negative option plan 
 contract; and
        (E) any combination of the contracts described in 
 subparagraphs
        (A) through
            (D) .

    (10) Notification.--The term ``notification'', when used 
 with respect to the terms of a contract, means a written 
 notification that clearly, conspicuously, and concisely states 
 all material terms of the negative option, including 
 information regarding the simple mechanism for cancellation and 
 the length of time required for a merchant of record to 
 complete any cancellation request.

    (11) Preliminary period.--The term ``preliminary period'' 
 means the period of a negative option contract prior to the 
 date on which a negative option takes effect.

    (12) Pre-notification negative option plan contract.--The 
 term ``pre-notification negative option plan contract'' means a 
 contract between any merchant of record and any consumer under 
 which the consumer receives periodic notices offering goods or 
 services and, unless the consumer specifically rejects the 
 offer, the consumer automatically receives the goods and 
 services and agrees to pay for such goods and services.

    (13) Simple mechanism.--The term ``simple mechanism'' means 
 the term described in 

section 425.6 of title 16, Code of 
 Federal Regulations, or any successor regulation.

SEC. 6. EFFECTIVE DATE.

 This Act shall apply with respect to contracts entered into or 
amended after the date that is 1 year after the date of the enactment 
of this Act.
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