,,ii #aagth ,,congress #ast ,session ,s4 #bjgb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #af1 #bjba,mr4 ,schatz 7for himself1 ,mr4 ,thune1 ,mr4 ,warnock1 and ,mr4 ,kennedy7 introduced the following bill2 which was read twice and referred to the ,committee on ,commerce1 ,science1 and ,transportation ,a ,,bill ,to increase consumer protection with respect to negative option offers in all media1 including on the internet1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,unsubscribe ,act of #bjba4 #b4 ,increased consumer protection with respect to negative option agreements 7a7 ,disclosure of negative options ,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 account1 or otherwise receive payment1 through a negative option1 unless the person clearly and conspicuously discloses all material terms of the transaction before obtaining the consumer's billing information or receiving payment1 whichever is earlier4 7b7 ,express informed consent for negative options ,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 account1 or otherwise receive payment1 through a negative option1 unless the person obtains a consumer's express informed consent before receiving payment or charging the consumer for products or services1 or otherwise receiving payment1 through such transaction4 7c7 ,term limitation for negative option agreements ,after the expiration of an introductory period1 initial fixed period1 or other preliminary period1 it shall be unlawful for any person to automatically renew or otherwise continue a negative option agreement with any consumer for a period greater than #a month1 unless such person1 at the time of such expiration1 obtains a consumer's express informed consent to renew or otherwise continue such agreement for a period greater than #a month4 7d7 ,cancellation of negative option agreements ,it shall be unlawful for any person to enter into a negative option agreement with any consumer1 unless the negative option agreement provides the consumer with a simple mechanism to stop any recurring payments1 including the ability to cancel the agreement in the same manner1 and by the same means1 into which the agreement was entered4 7e7 ,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 into1 unless each of the following is met3 7,a7 ,before obtaining the consumer's billing information1 or otherwise receiving payment1 the person has obtained the consumer's express informed consent to enter into the negative option contract and has provided the consumer with a notification of the terms of the negative option contract1 including1 but not limited to1 the following3 7i7 ,for an introductory period1 the consumer will receive the good or service at no cost or for a nominal cost4 7ii7 ,after the introductory period1 the amount the consumer will be charged or otherwise required to pay1 including any cost increase4 7iii7 ,the total cost 7or range of costs7 the consumer will be charged or otherwise required to pay4 7,b7 ,before the initial charge1 payment1 or initial increase after the introductory period1 the person informs the consumer about the upcoming charge or payment and provides the consumer with access to information about the simple mechanisms to cancel the contract4 7#b7 ,mandatory notifications ,after the introductory period in a free-to-pay conversion contract entered into between any person and any consumer1 and at regular intervals1 as determined by the ,commission1 but no less frequently than annually1 while the contract remains in effect1 the person shall provide the consumer with a notification of the terms of the contract4 7f7 ,mandatory notifications with respect to other negative option agreements 7#a7 ,automatic renewal contracts ,with respect to an automatic renewal contract entered into between any person and any consumer-- 7,a7 not later than #b days and no more than #g 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 at regular intervals1 as determined by the ,commission1 but no less frequently than annually1 while the contract remains in effect1 the person shall provide the consumer with a notification of the terms of the contract and access to1 or information about1 the simple mechanisms to cancel the contract4 7#b7 ,continuity plan contracts ,with respect to a continuity plan contract entered into between any person and any consumer1 the person shall provide the consumer with a notification of the terms of the contract and access to information about the simple mechanisms to cancel the contract at regular intervals1 as determined by the ,commission1 but no less frequently than annually while the contract remains in effect4 #c4 ,enforcement 7a7 ,by the ,commission 7#a7 ,in ,general ,a violation of 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 ,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 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 a part of this ,act4 7#c7 ,authority preserved ,nothing in this ,act shall be construed to limit the authority of the ,commission under any other provision of law4 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 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 ,commission of any civil action brought under paragraph 7#a7 that includes 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 ,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 ,commission or the ,united ,states4 #d4 ,preemption of directly conflicting ,state laws ,this ,act shall supersede any ,state law to the extent such law directly conflicts with the provisions of this ,act1 or a standard1 rule1 or regulation promulgated under this ,act1 and then only to the extent of such direct conflict4 ,any ,state law1 rule1 or regulation shall not be considered in direct conflict if it affords a greater level of protection to individuals protected under this ,act4 #e4 ,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 ,commission ,the term ,commission means the ,federal ,trade ,commission4 7#c7 ,continuity plan contract ,the term continuity plan contract means a contract between any person and any consumer under which the consumer agrees to pay for periodic shipments of goods or the provision of services1 unless the consumer instructs otherwise4 7#d7 ,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 amount the consumer will be charged or otherwise be required to pay is increased for the good or service4 7#e7 ,negative option ,the term negative option means-- 7,a7 an offer or agreement to sell or provide any goods or services1 or a provision under which the customer's silence or failure to take an affirmative action to reject goods or services or to cancel the agreement is interpreted by the seller as acceptance of the offer1 including but not limited to-- 7i7 an automatic renewal contract2 7ii7 a continuity plan contract2 7iii7 a free-to-pay conversion contract2 7iv7 a pre-notification negative option plan contract2 or 7v7 any combination of the contracts described in clauses 7i7 through 7iv74 7#f7 ,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 negative option1 including information regarding the simple mechanisms for cancellation4 7#g7 ,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 or services and1 unless the consumer specifically rejects the offer1 the consumer automatically receives the goods and services and agrees to pay for such goods and services4 #f4 ,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