,i #aafth ,,congress #ast ,session ,h4 ,r4 #bfhc ,,in ,,the ,,house ,,of ,,representatives ,may #aj1 #bjai ,mr4 ,takano introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce ,a ,,bill ,to increase consumer protection with respect to negative option agreements entered into on the ,internet1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,unsubscribe ,act of #bjai4 #b4 ,increased consumer protection with respect to negative option agreements entered into on the ,internet 7a7 ,cancellation of negative option agreements ,no person may enter into a negative option agreement on the ,internet with any consumer1 unless the negative option agreement provides the consumer with a mechanism to cancel the agreement in the same manner1 and by the same means1 into which the agreement was entered4 7b7 ,requirements for free-,to-,pay conversion contracts 7#a7 ,in general ,it shall be unlawful for any person to charge or attempt to charge any consumer's credit card1 debit card1 bank account1 or other financial account for any good or service sold in a free-to-pay conversion contract entered into on the ,internet1 unless-- 7,a7 before obtaining the consumer's billing information1 the person has obtained the consumer's express informed consent to enter into the contract and has provided the consumer with a notification of the terms of the contract1 including the fact that-- 7i7 for an introductory period1 the consumer will receive the good or service at no charge or for a nominal charge2 and 7ii7 after the introductory period1 the consumer will be charged or charged an increased amount for the good or service2 and 7,b7 before the initial charge or initial increase after the introductory period1 the person requires the consumer to perform an additional affirmative action1 such as clicking on a confirmation button or checking a box1 which indicates the consumer's consent to be charged the amount disclosed4 7#b7 ,mandatory notifications ,after the introductory period in a free-to-pay conversion contract entered into on the ,internet between any person and any consumer1 and on a quarterly basis while the contract remains in effect1 the person shall provide the consumer with a copy of the notification of the terms of the contract4 7c7 ,mandatory notifications with respect to other negative option agreements 7#a7 ,automatic renewal contracts ,with respect to an automatic renewal contract entered into on the ,internet between any person and any consumer-- 7,a7 not later than #cj days before the end of the initial fixed period in the contract1 the person shall provide the consumer with a notification of the terms of the contract2 and 7,b7 after the initial fixed period in the contract1 and on a quarterly basis while the contract remains in effect1 the person shall provide the consumer with a copy of the notification of the terms of the contract4 7#b7 ,continuity plan contracts ,with respect to a continuity plan contract entered into on the ,internet between any person and any consumer1 the person shall provide the consumer with a copy of the notification of the terms of the contract on a quarterly basis while the contract remains in effect4 7d7 ,mandatory notifications with respect to material changes in terms of negative option agreements ,in the case of a material change in the terms of a negative option agreement entered into on the ,internet between any person and a consumer1 the person shall provide the consumer with a notification of the terms of the agreement as changed before the change takes effect4 7e7 ,regulations ,the ,federal ,trade ,commission may prescribe regulations under section #eec of title #e1 ,united ,states ,code1 to carry out this ,act4 #c4 ,enforcement 7a7 ,by ,federal ,trade ,commission 7#a7 ,in ,general ,a violation of this ,act or any regulation prescribed under this ,act shall be treated as a violation of a rule issued under section #ah7;a77#a77;,b7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b77 regarding unfair or deceptive acts or practices4 ,the ,federal ,trade ,commission shall enforce this ,act in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms and provisions of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 were incorporated into and made a part of this ,act4 7#b7 ,penalties ,any person who violates this ,act or any regulation prescribed under this ,act shall be subject to the penalties and entitled to the privileges and immunities provided in the ,federal ,trade ,commission ,act as though all applicable terms and provisions of the ,federal ,trade ,commission ,act were incorporated in and made part of this ,act4 7b7 ,by ,state ,attorneys ,general 7#a7 ,in general ,except as provided in paragraph 7#e71 the attorney general of a ,state or other authorized ,state officer alleging a violation of this ,act or any regulation prescribed under this ,act that affects or may affect the ,state or the residents of the ,state may bring an action on behalf of the residents of the ,state in any ,united ,states district court for the district in which the defendant is found1 resides1 or transacts business1 or wherever venue is proper under section #acia of title #bh1 ,united ,states ,code1 to obtain appropriate injunctive relief4 7#b7 ,notice to ,commission required ,a ,state shall provide prior written notice to the ,federal ,trade ,commission of any civil action brought under paragraph 7#a7 with a copy of the complaint for the civil action1 except that if providing such prior notice is not feasible for the ,state1 the ,state shall provide notice immediately upon instituting the civil action4 7#c7 ,intervention by the ,commission ,the ,federal ,trade ,commission may intervene in a civil action brought under paragraph 7#a7 and upon intervening-- 7,a7 may be heard on all matters arising in the civil action2 and 7,b7 may file petitions for appeal of a decision in the civil action4 7#d7 ,construction ,nothing in this subsection shall be construed-- 7,a7 to prevent the attorney general of a ,state or other authorized ,state officer from exercising the powers conferred on the attorney general or other authorized ,state officer by the laws of the ,state2 or 7,b7 to prohibit the attorney general of a ,state or other authorized ,state officer from proceeding in ,state or ,federal court on the basis of an alleged violation of any civil or criminal statute of that ,state4 7#e7 ,limitation ,an action may not be brought under this subsection if1 at the time the action is brought1 the same alleged violation is the subject of a pending action by the ,federal ,trade ,commission or the ,united ,states4 #d4 ,definitions ,in this ,act3 7#a7 ,automatic renewal contract ,the term automatic renewal contract means a contract between any person and any consumer for a good or service that is automatically renewed after an initial fixed period1 unless the consumer instructs otherwise4 7#b7 ,continuity plan contract ,the term continuity plan contract means a contract between any person and any consumer under which the consumer agrees to incur charges in exchange for periodic shipments of goods or the provision of services1 unless the consumer instructs otherwise4 7#c7 ,free-to-pay conversion contract ,the term free-to-pay conversion contract means a contract between any person and any consumer under which-- 7,a7 for an introductory period1 the consumer receives a good or service at no charge or for a nominal charge2 and 7,b7 after the introductory period1 the consumer is charged or charged an increased amount for the good or service4 7#d7 ,negative option agreement ,the term negative option agreement means-- 7,a7 an automatic renewal contract2 7,b7 a continuity plan contract2 7,c7 a free-to-pay conversion contract2 7,d7 a pre-notification negative option plan contract2 or 7,e7 any combination of the contracts described in subparagraphs 7,a7 through 7,d74 7#e7 ,notification ,the term notification1 when used with respect to the terms of a contract1 means a written notification that clearly1 conspicuously1 and concisely states all material terms of the contract1 including information regarding the cancellation process4 7#f7 ,pre-notification negative option plan contract ,the term pre-notification negative option plan contract means a contract between any person and any consumer under which the consumer receives periodic notices offering goods and1 unless the consumer specifically rejects the offer1 the consumer automatically receives the goods and incurs a charge for such goods4 #e4 ,effective date ,this ,act shall apply with respect to contracts entered into after the date that is #a year after the date of the enactment of this ,act4