,,ii #aahth ,,congress #ast ,session ,s4 #ajia ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #cj1 #bjbc,mr4 ,van ,hollen 7for himself1 ,mr4 ,blumenthal1 ,mr4 ,lujn1 ,mr4 ,reed1 and ,mr4 ,wyden7 introduced the following bill2 which was read twice and referred to the ,committee on ,commerce1 ,science1 and ,transportation ,a ,,bill ,to provide for automatic renewal protections1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,consumer ,online ,payment ,transparency and ,integrity ,act4 #b4 ,automatic renewal protections 7a7 ,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 contract4 7b7 ,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-- 7#a7 notify1 in the same manner as the consumer entered into the contract1 the consumer of-- 7,a7 the first automatic renewal 7and of each automatic renewal thereafter7 not less than #g days 7or a longer time period as determined appropriate by the ,commission7 before the commencement of the renewal period2 and 7,b7 how the consumer may cancel the contract1 which shall include-- 7i7 an online mechanism for cancellation provided by the person2 and 7ii7 a toll-free telephone number1 email address1 postal mail address1 or other cost-effective1 timely1 and easy-to-use mechanism for cancellation provided by the person2 7#b7 on an annual basis and notwithstanding the consumer's consent to the initial term 7or any subsequent term71 obtain the consumer's express informed consent to renew the contract before charging the consumer for the automatic renewal2 and 7#c7 notwithstanding the consumer's consent to the initial term 7or any subsequent term71 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 #f consecutive months since the consumer's most recent express informed consent-- 7,a7 obtain the consumer's express informed consent to the automatic renewal before charging the consumer for the automatic renewal2 and 7,b7 notify the consumer that the consumer has a right to terminate the contract and receive a prorated refund for the remaining portion of the contract4 7c7 ,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 period1 shall-- 7#a7 notify1 in the same manner as the consumer entered into the contract1 the consumer-- 7,a7 that the consumer will be charged for the good or service not less than #g days 7or a longer time period as determined appropriate by the ,commission7 before the expiration of the free trial period2 and 7,b7 of how the consumer may cancel the contract1 which shall include-- 7i7 an online mechanism for cancellation provided by the person2 and 7ii7 a toll-free telephone number1 email address1 postal mail address1 or other cost-effective1 timely1 and easy-to-use mechanism for cancellation provided by the person2 and 7#b7 notwithstanding the consumer's consent to the free trial1 obtain the consumer's express informed consent to the applicable charge for the good or service not less than #g days 7or a longer time period as determined appropriate by the ,commission7 before the expiration of the free trial period and before charging the consumer for the automatic renewal4 7d7 ,automatic renewal void ,in the case of a violation of subsection 7a71 7b71 or 7c7-- 7#a7 the applicable automatic renewal provision shall be void1 and the contract shall terminate upon the occurrence of such violation2 and 7#b7 the person who violated subsection 7a71 7b71 or 7c7 shall provide the consumer with a refund for all amounts paid by the consumer due to such violation4 7e7 ,dark patterns ,with respect to a contract that includes a free-to-pay conversion or negative option feature or any other automatic renewal provision1 a consumer's consent obtained through the use of dark patterns shall not be considered express informed consent4 7f7 ,exemptions ,the requirements under subsections 7a71 7b71 7c71 and 7d7 shall not apply to a service contract or any other person or contract determined appropriate by the ,commission4 7g7 ,effective date ,the requirements under this section shall take effect on the date that is #a year after the date of enactment of this ,act4 #c4 ,enforcement by the ,commission 7a7 ,unfair or deceptive acts or practices ,a violation of section #b 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 #ah7;a77#a77;,b7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 7b7 ,powers of the ,commission 7#a7 ,in general ,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 ,privileges and immunities ,any person who violates section #b 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 7#ae ,u4,s4,c4 #da et seq474 7#c7 ,authority preserved ,nothing in this ,act shall be construed to limit the authority of the ,commission under any other provision of law4 7#d7 ,rulemaking ,the ,commission shall promulgate in accordance with section #eec of title #e1 ,united ,states ,code1 such rules as may be necessary to carry out this ,act1 or to prevent unfair or deceptive acts or practices regarding free trials1 automatic renewals1 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 offer4 #d4 ,definitions ,in this ,act3 7#a7 ,commission ,the term ,commission means the ,federal ,trade ,commission4 7#b7 ,consumer ,the term consumer means any person who seeks or acquires1 by purchase or lease1 any goods or services4 7#c7 ,dark patterns ,the term dark patterns means a user interface that has the substantial effect of subverting or impairing user autonomy1 decision making1 or choice4 7#d7 ,free-to-pay conversion ,the term free-to-pay conversion has the meaning given that term in section #caj4b of title #af1 ,code of ,federal ,regulations4 7#e7 ,negative option feature ,the term negative option feature has the meaning given that term in section #caj4b of title #af1 ,code of ,federal ,regulations4 7#f7 ,service contract ,the term service contract means a contract or agreement for a separately stated consideration for any duration-- 7,a7 to perform the repair1 replacement1 or maintenance of property or indemnification for service repair1 replacement1 or maintenance for the operational or structural failure of any motor vehicle or residential or other property due to a defect in materials1 workmanship1 accidental damage from handling1 or normal wear and tear2 or 7,b7 to indemnify for the same1 including towing1 rental1 or emergency road service or road hazard protection1 and which may provide for the service repair1 replacement1 or maintenance of property for damage resulting from power surges or interruption4