This bill requires the seller of a good or service that includes certain automatic renewal or free-to-pay conversion features to provide consumers with (1) advance notice of the renewal or conversion, (2) an online mechanism for canceling the contract for the good or service, and (3) additional contact information (e.g., toll-free telephone number) for canceling the contract.
Additionally, notwithstanding the consumer's consent to the initial term, the seller of a good or service that includes an automatic renewal contract must obtain the consumer's express informed consent to renew the contract on an annual basis prior to charging the consumer for the renewal.
Notwithstanding the consumer's consent to a free trial, the seller of a good or service that includes a free-to-pay conversion feature must obtain the consumer's express informed consent to renew the contract not less than seven days before the expiration of the free trial period and before charging the consumer for the renewal.
The bill provides for enforcement of these requirements by the Federal Trade Commission.
