I 

115TH CONGRESS 

1ST SESSION H. R. 1097 

To increase consumer protection with respect to negative option agreements 

entered into on the Internet, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 15, 2017 

Mr. TAKANO (for himself and Mr. BISHOP of Georgia) introduced the 

following bill; which was referred to the Committee on Energy and Commerce 

A BILL 

To increase consumer protection with respect to negative 

option agreements entered into on the Internet, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Unsubscribe Act of 

5 2017’’. 

6 SEC. 2. INCREASED CONSUMER PROTECTION WITH RE7 SPECT TO NEGATIVE OPTION AGREEMENTS 

8 ENTERED INTO ON THE INTERNET. 

9 (a) CANCELLATION OF NEGATIVE OPTION AGREE10 MENTS.—No person may enter into a negative option 


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1 agreement on the Internet with any consumer, unless the 

2 negative option agreement provides the consumer with a 

3 mechanism to cancel the agreement in the same manner, 

4 and by the same means, into which the agreement was 

5 entered. 

6 (b) REQUIREMENTS FOR FREE-TO-PAY CONVERSION

7 CONTRACTS.— 

8 (1) IN GENERAL.—It shall be unlawful for any 

9 person to charge or attempt to charge any con10 sumer’s credit card, debit card, bank account, or 

11 other financial account for any good or service sold 

12 in a free-to-pay conversion contract entered into on 

13 the Internet, unless— 

14 (A) before obtaining the consumer’s billing 

15 information, the person has obtained the con16 sumer’s express informed consent to enter into 

17 the contract and has provided the consumer 

18 with a notification of the terms of the contract, 

19 including the fact that— 

20 (i) for an introductory period, the con21 sumer will receive the good or service at no 

22 charge or for a nominal charge; and 

23 (ii) after the introductory period, the 

24 consumer will be charged or charged an inVerDate Sep 11 2014 00:50 Feb 23, 2017 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1097.IH H1097

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1 creased amount for the good or service; 

2 and 

3 (B) before the initial charge or initial in4 crease after the introductory period, the person 

5 requires the consumer to perform an additional 

6 affirmative action, such as clicking on a con7 firmation button or checking a box, which indi8 cates the consumer’s consent to be charged the 

9 amount disclosed. 

10 (2) MANDATORY NOTIFICATIONS.—After the in11 troductory period in a free-to-pay conversion con12 tract entered into on the Internet between any per13 son and any consumer, and on a quarterly basis 

14 while the contract remains in effect, the person shall 

15 provide the consumer with a copy of the notification 

16 of the terms of the contract. 

17 (c) MANDATORY NOTIFICATIONS WITH RESPECT TO

18 OTHER NEGATIVE OPTION AGREEMENTS.— 

19 (1) AUTOMATIC RENEWAL CONTRACTS.—With 

20 respect to an automatic renewal contract entered 

21 into on the Internet between any person and any 

22 consumer— 

23 (A) not later than 30 days before the end 

24 of the initial fixed period in the contract, the 


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1 person shall provide the consumer with a notifi2 cation of the terms of the contract; and 

3 (B) after the initial fixed period in the con4 tract, and on a quarterly basis while the con5 tract remains in effect, the person shall provide 

6 the consumer with a copy of the notification of 

7 the terms of the contract. 

8 (2) CONTINUITY PLAN CONTRACTS.—With re9 spect to a continuity plan contract entered into on 

10 the Internet between any person and any consumer, 

11 the person shall provide the consumer with a copy 

12 of the notification of the terms of the contract on a 

13 quarterly basis while the contract remains in effect. 

14 (d) REGULATIONS.—The Federal Trade Commission 

15 may prescribe regulations under section 553 of title 5, 

16 United States Code, to carry out this Act. 

17 SEC. 3. ENFORCEMENT. 

18 (a) BY FEDERAL TRADE COMMISSION.— 

19 (1) IN GENERAL.—A violation of this Act or 

20 any regulation prescribed under this Act shall be 

21 treated as a violation of a rule issued under section 

22 18(a)(1)(B) of the Federal Trade Commission Act 

23 (15 U.S.C. 57a(a)(1)(B)) regarding unfair or decep24 tive acts or practices. The Federal Trade Commis25 sion shall enforce this Act in the same manner, by 


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1 the same means, and with the same jurisdiction, 

2 powers, and duties as though all applicable terms 

3 and provisions of the Federal Trade Commission Act 

4 (15 U.S.C. 41 et seq.) were incorporated into and 

5 made a part of this Act. 

6 (2) PENALTIES.—Any person who violates this 

7 Act or any regulation prescribed under this Act shall 

8 be subject to the penalties and entitled to the privi9 leges and immunities provided in the Federal Trade 

10 Commission Act as though all applicable terms and 

11 provisions of the Federal Trade Commission Act 

12 were incorporated in and made part of this Act. 

13 (b) BY STATE ATTORNEYS GENERAL.— 

14 (1) IN GENERAL.—Except as provided in para15 graph (5), the attorney general of a State or other 

16 authorized State officer alleging a violation of this 

17 Act or any regulation prescribed under this Act that 

18 affects or may affect the State or the residents of 

19 the State may bring an action on behalf of the resi20 dents of the State in any United States district 

21 court for the district in which the defendant is 

22 found, resides, or transacts business, or wherever 

23 venue is proper under section 1391 of title 28, 

24 United States Code, to obtain appropriate injunctive 

25 relief. 


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1 (2) NOTICE TO COMMISSION REQUIRED.—A 

2 State shall provide prior written notice to the Fed3 eral Trade Commission of any civil action brought 

4 under paragraph (1) with a copy of the complaint 

5 for the civil action, except that if providing such 

6 prior notice is not feasible for the State, the State 

7 shall provide notice immediately upon instituting the 

8 civil action. 

9 (3) INTERVENTION BY THE COMMISSION.—The 

10 Federal Trade Commission may intervene in a civil 

11 action brought under paragraph (1) and upon inter12 vening— 

13 (A) may be heard on all matters arising in 

14 the civil action; and 

15 (B) may file petitions for appeal of a deci16 sion in the civil action. 

17 (4) CONSTRUCTION.—Nothing in this sub18 section shall be construed— 

19 (A) to prevent the attorney general of a 

20 State or other authorized State officer from ex21 ercising the powers conferred on the attorney 

22 general or other authorized State officer by the 

23 laws of the State; or 

24 (B) to prohibit the attorney general of a 

25 State or other authorized State officer from 


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1 proceeding in State or Federal court on the 

2 basis of an alleged violation of any civil or 

3 criminal statute of that State. 

4 (5) LIMITATION.—An action may not be 

5 brought under this subsection if, at the time the ac6 tion is brought, the same alleged violation is the sub7 ject of a pending action by the Federal Trade Com8 mission or the United States. 

9 SEC. 4. DEFINITIONS. 

10 In this Act: 

11 (1) AUTOMATIC RENEWAL CONTRACT.—The 

12 term ‘‘automatic renewal contract’’ means a contract 

13 between any person and any consumer for a good or 

14 service that is automatically renewed after an initial 

15 fixed period, unless the consumer instructs other16 wise. 

17 (2) CONTINUITY PLAN CONTRACT.—The term 

18 ‘‘continuity plan contract’’ means a contract between 

19 any person and any consumer under which the con20 sumer agrees to incur charges in exchange for peri21 odic shipments of goods or the provision of services, 

22 unless the consumer instructs otherwise. 

23 (3) FREE-TO-PAY CONVERSION CONTRACT.— 

24 The term ‘‘free-to-pay conversion contract’’ means a 


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1 contract between any person and any consumer 

2 under which— 

3 (A) for an introductory period, the con4 sumer receives a good or service at no charge 

5 or for a nominal charge; and 

6 (B) after the introductory period, the con7 sumer is charged or charged an increased 

8 amount for the good or service. 

9 (4) NEGATIVE OPTION AGREEMENT.—The term 

10 ‘‘negative option agreement’’ means— 

11 (A) an automatic renewal contract; 

12 (B) a continuity plan contract; 

13 (C) a free-to-pay conversion contract; 

14 (D) a pre-notification negative option plan 

15 contract; or 

16 (E) any combination of the contracts de17 scribed in subparagraphs (A) through (D). 

18 (5) NOTIFICATION.—The term ‘‘notification’’, 

19 when used with respect to the terms of a contract, 

20 means a written notification that clearly, conspicu21 ously, and concisely states all material terms of the 

22 contract, including information regarding the can23 cellation process. 

24 (6) PRE-NOTIFICATION NEGATIVE OPTION PLAN

25 CONTRACT.—The term ‘‘pre-notification negative opVerDate Sep 11 2014 00:50 Feb 23, 2017 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1097.IH H1097

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1 tion plan contract’’ means a contract between any 

2 person and any consumer under which the consumer 

3 receives periodic notices offering goods and, unless 

4 the consumer specifically rejects the offer, the con5 sumer automatically receives the goods and incurs a 

6 charge for such goods. 

7 SEC. 5. EFFECTIVE DATE. 

8 This Act shall apply with respect to contracts entered 

9 into after the date that is 1 year after the date of the 

10 enactment of this Act. 

Æ 


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