,,ii  #aai? ,,congress  #a/ ,session    
,s4 #bbec  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #aj1 #bjbe,mr4   
,s*atz 7= himself & ,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 options 9 all    
m$ia1 includ+ on ! int]net1 & = o!r     
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,unsubscribe ,act ( #bjbe4 
#b4 ,increas$ consum] protection )      
respect to negative options  7a7        
,disclosure ( negative options ,x %all  
be unlawful = any m]*ant ( record to    
*>ge or attempt to *>ge a cr$it c>d1    
debit c>d1 bank acc\nt1 or o!r f9ancial 
acc\nt ( any consum]1 or o!rwise receive
 paym5t f any consum]1 ?r\gh a negative 
option1 unless ! m]*ant ( record cle>ly 
& conspicu\sly discloses all mat]ial    
t]ms ( ! contract involv$ be=e receiv+  
paym5t or *>g+ ! consum]1 or o!rwise    
receiv+ paym5t1 ?r\gh su* negative      

option4  7b7 ,express in=m$ cons5t =    
negative options  7#a7 ,requirem5t ,x   
%all be unlawful = any m]*ant ( record  
to *>ge or attempt to *>ge a cr$it c>d1 
debit c>d1 bank acc\nt1 or o!r f9ancial 
acc\nt ( any consum]1 or o!rwise receive
 paym5t f any consum]1 ?r\gh a negative 
option1 unless ! m]*ant ( record obta9s 
! express in=m$ cons5t ( ! consum] be=e 
receiv+ paym5t or *>g+ ! consum]1 or    
o!rwise receiv+ paym5t1 ?r\gh su*       
negative option4  7#b7 ,duration ,a     
m]*ant ( record %all keep or ma9ta9     
v]ification ( ! express in=m$ cons5t    
obta9$ pursuant to p>agraph 7#a7 = n    
few] ?an #c ye>s1 unless su* m]*ant (   
record demon/rates by a prepond]ance ( !
 evid5ce t ! m]*ant ( record uses       
processes t ensure a consum] may n      
te*nologically complete a transaction   
)\t su* express in=m$ cons5t4  7c7 ,t]m 
limitation = negative option contracts  
,aft] ! expiration ( a prelim9>y p]iod1 
x %all be unlawful = any m]*ant ( record
 to automatically r5ew or o!rwise       

cont9ue a negative option contract ) any
 consum] = a p]iod t is great] ?an !    
l5g? ( ! prelim9>y p]iod1 unless su*    
m]*ant ( record1 at ! "t ( su*          
expiration1 obta9s ! express in=m$      
cons5t ( ! consum] to r5ew or o!rwise   
cont9ue su* negative option contract4   
7d7 ,cancellation ( negative option     
contracts  7#a7 ,onl9e m]*ants ,9 ! case
 ( a negative option contract t is ent]$
 into electronically1 x %all be unlawful
 = any m]*ant ( record to ent] into su* 
negative option contract ) any consum]  
unless su* m]*ant ( record provides to !
 consum] a simple me*anism1 includ+ a   
direct l9k to an electronic =m1 t       
enables ! consum] to submit a reque/ to 
cancel su* negative option contract )\t 
requir+ ! consum] to take additional    
/eps by any means o!r ?an               
electronically4  7#b7 ,o!r m]*ants ,9 ! 
case ( a negative option contract t is  
ent]$ into ?r\gh means o!r ?an          
electronically1 x %all be unlawful = any
 m]*ant ( record to ent] into su*       

negative option contract ) any consum]  
unless su* negative option contract     
provides ! consum] ) a simple me*anism =
 cancellation1 9 ! same mann]1 & by !   
same means1 z su* negative option       
contract 0 ent]$ into1 or1 if n         
practicable1 ?r\gh "s o!r simple        
me*anism = cancellation4  7e7           
,requirem5ts = free-,to-,pay conv]sion  
contracts ,x %all be unlawful = any     
m]*ant ( record to *>ge or attempt to   
*>ge a cr$it c>d1 debit c>d1 bank       
acc\nt1 or o!r f9ancial acc\nt ( any    
consum] = any good or s]vice sold "u a  
free-to-pay conv]sion contract1 unless  
ea* ( ! foll[+ is met3  7#a7 ,be=e      
complet+ ! f9ancial transaction1 or     
o!rwise receiv+ paym5t1 ! m]*ant (      
record provides ! consum] ) a           
notification ( ! t]ms ( ! negative      
option contract & obta9s ! express in=m$
 cons5t ( ! consum] to su* t]ms1 includ+
 ! foll[+ t]ms3  7,a7 ,= an introductory
 p]iod1 ! consum] w receive ! good or   
s]vice at no co/ or = a disc\nt$ co/4   

7,b7 ,! am\nt ! consum] w be *>g$ or    
o!rwise requir$ to pay = ! introductory 
p]iod4  7,c7 ,! am\nt ! consum] w be    
*>g$ or o!rwise requir$ to pay1 on a    
recurr+ basis1 />t+ ) ! fir/ f9ancial   
transaction aft] ! introductory p]iod4  
7,d7 ,! total co/ 7or range ( co/s7 !   
consum] w be *>g$ or o!rwise requir$ to 
pay ?r\gh ! entire t]m ( su* contract   
7if su* t]m is less ?an #ab mon?s7 or   
co/ in=mation t enables ! consum] to    
det]m9e ! total co/ = ! subsequ5t       
#ab-mon? p]iod1 to ! ext5t kn[n4  7#b7  
,be=e ! fir/ *>ge1 paym5t1 or price     
increase aft] ! introductory p]iod1 !   
m]*ant ( record provides notification to
 ! consum] ab\t ! upcom+ *>ge1 paym5t1  
or increase & provides ! consum] )--    
7,a7 ! t]ms ( ! negative option         
contract1 includ+ ! l5g? ( "t requir$ = 
! m]*ant ( record to complete any       
cancellation reque/2 &  7,b7 direct     
access to in=mation ab\t ! simple       
me*anism = cancellation4  7f7 ,o!r      
notification requirem5ts = negative     

option contracts  7#a7 ,g5]al           
notification & access ,) respect to any 
negative option contract ent]$ into by a
 m]*ant ( record & a consum]1 ! m]*ant (
 record1 at regul> int]vals z det]m9$ by
 ! ,commission 7b n less frequ5tly ?an  
annually7 :ile su* negative option      
contract rema9s 9 effect1 %all provide !
 consum] )-- 7,a7 a notification ( !    
t]ms ( su* negative option contract2 &  
7,b7 direct access to in=mation ab\t !  
simple me*anism = cancellation4  7#b7   
,additional notification & access ,if a 
negative option contract specifies a    
p]iod ( "t dur+ :i* ! m]*ant ( record   
%all complete a cancellation reque/1 n  
few] ?an #b b n m ?an #g days be=e ! la/
 day on :i* ! consum] may cancel su*    
negative option contract )\t incurr+    
additional *>ges1 ! m]*ant ( record %all
 provide ! consum] ) ! notification &   
access requir$ by p>agraph 7#a74  #c4   
,en=cem5t  7a7 ,en=cem5t by ! ,f$]al    
,trade ,commission  7#a7 ,unfair or     
deceptive acts or practices ,a violation

 ( ?is ,act or a regulation promulgat$  
!reund] %all be treat$ z a violation ( a
 rule def9+ an unfair or deceptive act  
or practice "u section #ah7;a77#a77;,b7 
( ! ,f$]al ,trade ,commission ,act 7#ae 
,u4,s4,c4 #eg;a7a77#a77;,b774  7#b7     
,p[]s ( ! ,commission  7,a7 ,9 g5]al ,! 
,commission %all en=ce ?is ,act 9 ! same
 mann]1 by ! same means1 & ) ! same     
jurisdiction1 p[]s1 & duties z ?\gh all 
applicable t]ms & provisions ( ! ,f$]al 
,trade ,commission ,act 7#ae ,u4,s4,c4  
#da et seq47 7 incorporat$ into & made a
 "p ( ?is ,act4  7,b7 ,privileges &     
immunities ,any p]son :o violates ?is   
,act or a regulation promulgat$ !reund] 
%all be subject to ! p5alties & entitl$ 
to ! privileges & immunities provid$ 9 !
 ,f$]al ,trade ,commission ,act 7#ae    
,u4,s4,c4 #da et seq474  7,c7 ,au?ority 
pres]v$ ,no?+ 9 ?is ,act %all be con/ru$
 to limit ! au?ority ( ! ,commission "u 
any o!r provision ( law4  7,d7 ,rulemak+
 ,! ,commission %all promulgate 9       
accordance ) section #eec ( title #e1   

,unit$ ,/ates ,code1 su* rules z may be 
necess>y to c>ry out ?is ,act4  7b7     
,en=cem5t by ,/ates  7#a7 ,9 g5]al ,if !
 attorney g5]al ( a ,/ate1 or an (ficial
 or ag5cy ( a ,/ate1 has reason to      
believe t an int]e/ ( ! resid5ts ( !    
,/ate has be5 or is be+ ?reat5$ or      
adv]sely affect$ by a practice t        
violates ?is ,act1 ! ,/ate may br+ a    
civil action on behalf ( ! resid5ts ( ! 
,/ate 9 an appropriate di/rict c\rt ( ! 
,unit$ ,/ates to obta9 appropriate      
relief4  7#b7 ,rights ( ! ,commission   
7,a7 ,notice to ! ,commission  7i7 ,9   
g5]al ,except z provid$ 9 clause 7iii71 
an attorney g5]al1 (ficial1 or ag5cy ( a
 ,/ate1 be=e initiat+ a civil action "u 
p>agraph 7#a71 %all provide a writt5    
notice to ! ,commission t ! attorney    
g5]al1 (ficial1 or ag5cy int5ds to br+  
su* civil action4  7ii7 ,cont5ts ,!     
notice requir$ by clause 7i7 %all       
include a copy ( ! compla9t to be fil$  
to initiate ! civil action4  7iii7      
,exception ,if x is n feasible = an     

attorney g5]al1 (ficial1 or ag5cy ( a   
,/ate to provide ! notice requir$ by    
clause 7i7 be=e initiat+ a civil action 
"u p>agraph 7#a71 ! attorney g5]al1     
(ficial1 or ag5cy %all provide su*      
notice to ! ,commission imm$iately ^u   
in/itut+ ! civil action4  7,b7          
,int]v5tion by ! ,commission ,!         
,commission may-- 7i7 int]v5e 9 any     
civil action br\ght by an attorney      
g5]al1 (ficial1 or ag5cy ( a ,/ate "u   
p>agraph 7#a72 &  7ii7 ^u int]v5+-- 7,i7
 be he>d on all matt]s aris+ 9 ! civil  
action2 &  7,,ii7 appeal a decision 9 ! 
civil action4  7,c7 ,limitation on ,/ate
 action :ile ,f$]al action is p5d+ ,if !
 ,commission or ! ,attorney ,g5]al ( !  
,unit$ ,/ates has in/itut$ a civil      
action = violation ( ?is ,act 7ref]r$ to
 9 ?is subp>agraph z ! ,f$]al action71  
no ,/ate attorney g5]al1 (ficial1 or    
ag5cy may br+ an action "u p>agraph 7#a7
 dur+ ! p5d5cy ( ! ,f$]al action aga9/  
any def5dant nam$ 9 ! compla9t 9 !      
,f$]al action = any violation ( su* ,act

 alleg$ 9 su* compla9t4  7#c7 ,rule (   
con/ruction ,no?+ 9 ?is subsection may  
be con/ru$ to prev5t an attorney g5]al1 
(ficial1 or ag5cy ( a ,/ate f ex]cis+ ! 
p[]s conf]r$ on ! attorney g5]al1       
(ficial1 or ag5cy by ! laws ( ! ,/ate to
 conduct inve/igations1 to adm9i/] oa?s 
or affirmations1 or to compel !         
att5dance ( witnesses or ! production ( 
docum5t>y or o!r evid5ce4  #d4          
,preemption ( directly conflict+ ,/ate  
laws  7a7 ,9 g5]al ,no?+ 9 ?is ,act may 
be con/ru$ to preempt1 displace1 or     
supplant any ,/ate law1 except to !     
ext5t t a provision ( ,/ate law         
conflicts ) a provision ( ?is ,act1 & !n
 only to ! ext5t ( ! conflict4  7b7     
,great] protection "u ,/ate law ,=      
purposes ( ?is section1 a provision (   
,/ate law does n conflict ) a provision 
( ?is ,act if su* provision ( ,/ate law 
provides additional protections to      
consum]s protect$ "u ?is ,act4  7c7     
,conflict+ "t frames ,any diff]5ce      
betwe5 ,f$]al & ,/ate law 9 ! "t frame 9

 :i* a requirem5t impos$ on a p]son %all
 be met %all be consid]$ a conflict =   
purposes ( subsection 7a74  #e4         
,def9itions ,9 ?is ,act3 7#a7 ,automatic
 r5ewal contract ,! t]m automatic r5ewal
 contract means a contract betwe5 any   
m]*ant ( record & any consum] = ! sale (
 goods or s]vices t is automatically    
r5ew$ aft] a prelim9>y p]iod1 unless !  
consum] in/ructs o!rwise4  7#b7         
,commission ,! t]m ,commission means !  
,f$]al ,trade ,commission4  7#c7        
,cont9uity plan contract ,! t]m         
cont9uity plan contract means a contract
 betwe5 any m]*ant ( record & any       
consum] "u :i* ! consum] agrees to pay =
 p]iodic %ipm5ts ( goods or ! provision 
( s]vices1 unless ! consum] in/ructs    
o!rwise4  7#d7 ,express in=m$ cons5t    
7,a7 ,9 g5]al ,! t]m express in=m$      
cons5t means1 ) respect to an (f] or    
agreem5t = ! sale ( goods or s]vices t  
includes a negative option1 an          
affirmative action tak5 by a consum]1   
includ+ click+ on a confirmation button 

or *eck+ a box1 t-- 7i7 indicates !     
unambigu\s cons5t ( ! consum] to !      
negative option2 &  7ii7 is sep>ate &   
ap>t f any action tak5 by ! consum] to  
indicate ! initial cons5t ( ! consum] to
 all ( ! mat]ial t]ms ( ! (f] or        
agreem5t 7includ+ to be *>g$ = !        
prelim9>y p]iod71 b may occur at ! same 
"t z su* initial cons5t4  7,b7          
,exclusions ,! t]m express in=m$ cons5t 
%all n include-- 7i7 cons5t t is inf]r$ 
?r\gh ! inactivity or sil5ce ( a consum]
 or ! use ( pre-*eck$ boxes ) respect to
 an initial *>ge or any recurr+ *>ge2 or
  7ii7 cons5t obta9$ ?r\gh a us]        
int]face design$ or manipulat$ to h !   
sub/antial effect ( subv]t+ or impair+  
us] autonomy1 decision-mak+1 or *oice4  
7#e7 ,free-to-pay conv]sion contract ,! 
t]m free-to-pay conv]sion contract means
 a contract = ! sale ( goods or s]vices 
betwe5 any m]*ant ( record & any consum]
 t includes an introductory p]iod4  7#f7
 ,introductory p]iod ,! t]m introductory
 p]iod means a prelim9>y p]iod ( a      

contract = ! sale ( goods or s]vices    
:]e-- 7,a7 dur+ su* p]iod1 ! consum]    
receives a good or s]vice at no *>ge or 
= a disc\nt$ co/2 &  7,b7 at !          
expiration ( su* p]iod1 ! am\nt !       
consum] w be *>g$ or o!rwise be requir$ 
to pay = ! good or s]vice is increas$4  
7#g7 ,m]*ant ( record ,! t]m m]*ant (   
record means a p]son :o ent]s into a    
f9ancial contract ) a consum]4  7#h7    
,negative option ,! t]m negative option 
means a provision ( an (f] or agreem5t =
 ! sale ( goods or s]vices "u :i* !     
sil5ce ( a consum] or failure by a      
consum] to take an affirmative action to
 reject ! goods or s]vices or to cancel 
! agreem5t is int]pret$ by ! sell] z    
acceptance ( ! (f] or r5ewal ( !        
agreem5t4  7#i7 ,negative option        
contract ,! t]m negative option contract
 means a contract t includes a negative 
option1 includ+-- 7,a7 an automatic     
r5ewal contract2  7,b7 a cont9uity plan 
contract2  7,c7 a free-to-pay conv]sion 
contract2  7,d7 a pre-notification      

negative option plan contract2 &  7,e7  
any comb9ation ( ! contracts describ$ 9 
subp>agraphs 7,a7 ?r\gh 7,d74  7#aj7    
,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*anism = cancellation & ! l5g? ( "t   
requir$ = a m]*ant ( record to complete 
any cancellation reque/4  7#aa7         
,prelim9>y p]iod ,! t]m prelim9>y p]iod 
means ! p]iod ( a negative option       
contract prior to ! date on :i* a       
negative option takes effect4  7#ab7    
,pre-notification negative option plan  
contract ,! t]m pre-notification        
negative option plan contract means a   
contract betwe5 any m]*ant ( record &   
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  7#ac7 ,simple me*anism
 ,! t]m simple me*anism means ! t]m     
describ$ 9 section #dbe4f ( title #af1  
,code ( ,f$]al ,regulations1 or any     
successor regulation4  #f4 ,effective   
date ,?is ,act %all apply ) respect to  
contracts ent]$ into or am5d$ aft] !    
date t is #a ye> aft] ! date ( !        
enactm5t ( ?is ,act4