,,ii  #aag? ,,congress  #a/ ,session    
,s4 #bjgb  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #af1 #bjba,mr4   
,s*atz 7= himself1 ,mr4 ,?une1 ,mr4     
,w>nock1 & ,mr4 ,k5n$y7 introduc$ !     
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,comm]ce1 ,sci5ce1 & 
,transportation  ,a ,,bill  ,to increase
 consum] protection ) respect to        
negative option (f]s 9 all m$ia1 includ+
 on ! int]net1 & = o!r purposes4  #a4   
,%ort title ,?is ,act may be cit$ z !   
,unsubscribe ,act ( #bjba4  #b4         
,increas$ consum] protection ) respect  
to negative option agreem5ts  7a7       
,disclosure ( negative options ,x %all  
be unlawful = any p]son to *>ge or      
attempt to *>ge any consum]'s cr$it c>d1
 debit c>d1 bank acc\nt1 or o!r f9ancial
 acc\nt1 or o!rwise receive paym5t1     
?r\gh a negative option1 unless ! p]son 
cle>ly & conspicu\sly discloses all     
mat]ial t]ms ( ! transaction be=e obta9+
 ! consum]'s bill+ in=mation or receiv+ 
paym5t1 :i*ev] is e>li]4  7b7 ,express  

in=m$ cons5t = negative options ,x %all 
be unlawful = any p]son to *>ge or      
attempt to *>ge any consum]'s cr$it c>d1
 debit c>d1 bank acc\nt1 or o!r f9ancial
 acc\nt1 or o!rwise receive paym5t1     
?r\gh a negative option1 unless ! p]son 
obta9s a consum]'s express in=m$ cons5t 
be=e receiv+ paym5t or *>g+ ! consum] = 
products or s]vices1 or o!rwise receiv+ 
paym5t1 ?r\gh su* transaction4  7c7 ,t]m
 limitation = negative option agreem5ts 
,aft] ! expiration ( an introductory    
p]iod1 initial fix$ p]iod1 or o!r       
prelim9>y p]iod1 x %all be unlawful =   
any p]son to automatically r5ew or      
o!rwise cont9ue a negative option       
agreem5t ) any consum] = a p]iod great] 
?an #a mon?1 unless su* p]son1 at ! "t (
 su* expiration1 obta9s a consum]'s     
express in=m$ cons5t to r5ew or o!rwise 
cont9ue su* agreem5t = a p]iod great]   
?an #a mon?4  7d7 ,cancellation (       
negative option agreem5ts ,x %all be    
unlawful = any p]son to ent] into a     
negative option agreem5t ) any consum]1 

unless ! negative option agreem5t       
provides ! consum] ) a simple me*anism  
to /op any recurr+ paym5ts1 includ+ !   
ability to cancel ! agreem5t 9 ! same   
mann]1 & by ! same means1 into :i* !    
agreem5t 0 ent]$4  7e7 ,requirem5ts =   
free-to-,pay conv]sion contracts  7#a7  
,9 g5]al ,x %all be unlawful = any p]son
 to *>ge or attempt to *>ge any         
consum]'s cr$it c>d1 debit c>d1 bank    
acc\nt1 or o!r f9ancial acc\nt = any    
good or s]vice sold 9 a free-to-pay     
conv]sion contract ent]$ into1 unless   
ea* ( ! foll[+ is met3 7,a7 ,be=e obta9+
 ! consum]'s bill+ in=mation1 or o!rwise
 receiv+ paym5t1 ! p]son has obta9$ !   
consum]'s express in=m$ cons5t to ent]  
into ! negative option contract & has   
provid$ ! consum] ) a notification ( !  
t]ms ( ! negative option contract1      
includ+1 b n limit$ to1 ! foll[+3 7i7 ,=
 an introductory p]iod1 ! consum] w     
receive ! good or s]vice at no co/ or = 
a nom9al co/4  7ii7 ,aft] ! introductory
 p]iod1 ! am\nt ! consum] w be *>g$ or  

o!rwise requir$ to pay1 includ+ any co/ 
increase4  7iii7 ,! total co/ 7or range 
( co/s7 ! consum] w be *>g$ or o!rwise  
requir$ to pay4  7,b7 ,be=e ! initial   
*>ge1 paym5t1 or initial increase aft] !
 introductory p]iod1 ! p]son in=ms !    
consum] ab\t ! upcom+ *>ge or paym5t &  
provides ! consum] ) access to in=mation
 ab\t ! simple me*anisms to cancel !    
contract4  7#b7 ,m&atory notifications  
,aft] ! introductory p]iod 9 a          
free-to-pay conv]sion contract ent]$    
into betwe5 any p]son & any consum]1 &  
at regul> int]vals1 z det]m9$ by !      
,commission1 b no less frequ5tly ?an    
annually1 :ile ! contract rema9s 9      
effect1 ! p]son %all provide ! consum] )
 a notification ( ! t]ms ( ! contract4  
7f7 ,m&atory notifications ) respect to 
o!r negative option agreem5ts  7#a7     
,automatic r5ewal contracts ,) respect  
to an automatic r5ewal contract ent]$   
into betwe5 any p]son & any consum]--   
7,a7 n lat] ?an #b days & no m ?an #g   
days be=e ! end ( ! initial fix$ p]iod 9

 ! contract1 ! p]son %all provide !     
consum] ) a notification ( ! t]ms ( !   
contract2 &  7,b7 aft] ! initial fix$   
p]iod 9 ! contract1 & at regul>         
int]vals1 z det]m9$ by ! ,commission1 b 
no less frequ5tly ?an annually1 :ile !  
contract rema9s 9 effect1 ! p]son %all  
provide ! consum] ) a notification ( !  
t]ms ( ! contract & access to1 or       
in=mation ab\t1 ! simple me*anisms to   
cancel ! contract4  7#b7 ,cont9uity plan
 contracts ,) respect to a cont9uity    
plan contract ent]$ into betwe5 any     
p]son & any consum]1 ! p]son %all       
provide ! consum] ) a notification ( !  
t]ms ( ! contract & access to in=mation 
ab\t ! simple me*anisms to cancel !     
contract at regul> int]vals1 z det]m9$  
by ! ,commission1 b no less frequ5tly   
?an annually :ile ! contract rema9s 9   
effect4  #c4 ,en=cem5t  7a7 ,by !       
,commission  7#a7 ,9 ,g5]al ,a violation
 ( ?is ,act %all be treat$ z a violation
 ( a rule issu$ "u section              
#ah7;a77#a77;,b7 ( ! ,f$]al ,trade      

,commission ,act 7#ae ,u4,s4,c4         
#eg;a7a77#a77;,b77 reg>d+ unfair or     
deceptive acts or practices4 ,!         
,commission %all en=ce ?is ,act 9 ! same
 mann]1 by ! same means1 & ) ! same     
jurisdiction1 p[]s1 & duties z ?\gh all 
applicable t]ms & provisions ( ! ,f$]al 
,trade ,commission ,act 7#ae ,u4,s4,c4  
#da et seq47 7 incorporat$ into & made a
 "p ( ?is ,act4  7#b7 ,p5alties ,any    
p]son :o violates ?is ,act %all be      
subject to ! p5alties & entitl$ to !    
privileges & immunities provid$ 9 !     
,f$]al ,trade ,commission ,act z ?\gh   
all applicable t]ms & provisions ( !    
,f$]al ,trade ,commission ,act 7        
incorporat$ 9 & made a "p ( ?is ,act4   
7#c7 ,au?ority pres]v$ ,no?+ 9 ?is ,act 
%all be con/ru$ to limit ! au?ority ( ! 
,commission "u any o!r provision ( law4 
7b7 ,by ,/ate ,attorneys ,g5]al  7#a7 ,9
 g5]al ,except z provid$ 9 p>agraph     
7#e71 ! attorney g5]al ( a ,/ate or o!r 
au?oriz$ ,/ate (fic] alleg+ a violation 
( ?is ,act t affects or may affect !    

,/ate or ! resid5ts ( ! ,/ate may br+ an
 action on behalf ( ! resid5ts ( ! ,/ate
 9 any ,unit$ ,/ates di/rict c\rt = !   
di/rict 9 :i* ! def5dant is f\nd1       
resides1 or transacts bus9ess1 or :]ev] 
v5ue is prop] "u section #acia ( title  
#bh1 ,unit$ ,/ates ,code1 to obta9      
appropriate injunctive relief4  7#b7    
,notice to ,commission requir$ ,a ,/ate 
%all provide prior writt5 notice to !   
,commission ( any civil action br\ght "u
 p>agraph 7#a7 t includes a copy ( !    
compla9t = ! civil action1 except t if  
provid+ su* prior notice is n feasible =
 ! ,/ate1 ! ,/ate %all provide notice   
imm$iately ^u in/itut+ ! civil action4  
7#c7 ,int]v5tion by ! ,commission ,!    
,commission may int]v5e 9 a civil action
 br\ght "u p>agraph 7#a7 & ^u int]v5+-- 
7,a7 may be he>d on all matt]s aris+ 9 !
 civil action2 &  7,b7 may file         
petitions = appeal ( a decision 9 !     
civil action4  7#d7 ,con/ruction ,no?+ 9
 ?is subsection %all be con/ru$-- 7,a7  
to prev5t ! attorney g5]al ( a ,/ate or 

o!r au?oriz$ ,/ate (fic] f ex]cis+ !    
p[]s conf]r$ on ! attorney g5]al or o!r 
au?oriz$ ,/ate (fic] by ! laws ( !      
,/ate2 or  7,b7 to prohibit ! attorney  
g5]al ( a ,/ate or o!r au?oriz$ ,/ate   
(fic] f proce$+ 9 ,/ate or ,f$]al c\rt  
on ! basis ( an alleg$ violation ( any  
civil or crim9al /atute ( t ,/ate4  7#e7
 ,limitation ,an action may n be br\ght 
"u ?is subsection if1 at ! "t ! action  
is br\ght1 ! same alleg$ violation is ! 
subject ( a p5d+ action by ! ,commission
 or ! ,unit$ ,/ates4  #d4 ,preemption ( 
directly conflict+ ,/ate laws ,?is ,act 
%all sup]s$e any ,/ate law to ! ext5t   
su* law directly conflicts ) !          
provisions ( ?is ,act1 or a /&>d1 rule1 
or regulation promulgat$ "u ?is ,act1 & 
!n only to ! ext5t ( su* direct         
conflict4 ,any ,/ate law1 rule1 or      
regulation %all n be consid]$ 9 direct  
conflict if x af=ds a great] level (    
protection to individuals protect$ "u   
?is ,act4  #e4 ,def9itions ,9 ?is ,act3 
7#a7 ,automatic r5ewal contract ,! t]m  

automatic r5ewal contract means a       
contract betwe5 any p]son & any consum] 
= a good or s]vice t is automatically   
r5ew$ aft] an initial fix$ p]iod1 unless
 ! consum] in/ructs o!rwise4  7#b7      
,commission ,! t]m ,commission means !  
,f$]al ,trade ,commission4  7#c7        
,cont9uity plan contract ,! t]m         
cont9uity plan contract means a contract
 betwe5 any p]son & any consum] "u :i* !
 consum] agrees to pay = p]iodic %ipm5ts
 ( goods or ! provision ( s]vices1      
unless ! consum] in/ructs o!rwise4  7#d7
 ,free-to-pay conv]sion contract ,! t]m 
free-to-pay conv]sion contract means a  
contract betwe5 any p]son & any consum] 
"u :i*-- 7,a7 = an introductory p]iod1 !
 consum] receives a good or s]vice at no
 *>ge or = a nom9al *>ge2 &  7,b7 aft] !
 introductory p]iod1 ! am\nt ! consum] w
 be *>g$ or o!rwise be requir$ to pay is
 increas$ = ! good or s]vice4  7#e7     
,negative option ,! t]m negative option 
means-- 7,a7 an (f] or agreem5t to sell 
or provide any goods or s]vices1 or a   

provision "u :i* ! cu/om]'s sil5ce or   
failure to take an affirmative action to
 reject goods or s]vices or to cancel ! 
agreem5t is int]pret$ by ! sell] z      
acceptance ( ! (f]1 includ+ b n limit$  
to-- 7i7 an automatic r5ewal contract2  
7ii7 a cont9uity plan contract2  7iii7 a
 free-to-pay conv]sion contract2  7iv7 a
 pre-notification negative option plan  
contract2 or  7v7 any comb9ation ( !    
contracts describ$ 9 clauses 7i7 ?r\gh  
7iv74  7#f7 ,notification ,! t]m        
notification1 :5 us$ ) respect to ! t]ms
 ( a contract1 means a writt5           
notification t cle>ly1 conspicu\sly1 &  
concisely /ates all mat]ial t]ms ( !    
negative option1 includ+ in=mation      
reg>d+ ! simple me*anisms =             
cancellation4  7#g7 ,pre-notification   
negative option plan contract ,! t]m    
pre-notification negative option plan   
contract means a contract betwe5 any    
p]son & any consum] "u :i* ! consum]    
receives p]iodic notices (f]+ goods or  
s]vices &1 unless ! consum] specifically

 rejects ! (f]1 ! consum] automatically 
receives ! goods & s]vices & agrees to  
pay = su* goods & s]vices4  #f4         
,effective date ,?is ,act %all apply )  
respect to contracts ent]$ into aft] !  
date t is #a ye> aft] ! date ( !        
enactm5t ( ?is ,act4