I 

118TH CONGRESS 

1ST SESSION H. R. 2460 

To provide for automatic renewal protections, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 3, 2023 

Ms. CLARKE of New York introduced the following bill; which was referred 

to the Committee on Energy and Commerce 

A BILL 

To provide for automatic renewal protections, 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 ‘‘Consumer Online Pay5 ment Transparency and Integrity Act’’. 

6 SEC. 2. AUTOMATIC RENEWAL PROTECTIONS. 

7 (a) IN GENERAL.—A person who sells a good or serv8 ice to a consumer pursuant to a contract that includes 

9 a free-to-pay conversion or negative option feature or any 

10 other automatic renewal provision shall disclose such feaVerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2460.IH H2460

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1 ture or provision and the cancellation procedure clearly 

2 and conspicuously in the contract. 

3 (b) AUTOMATIC RENEWAL.—A person who sells a 

4 good or service to a consumer pursuant to a contract that 

5 will automatically renew unless the consumer cancels the 

6 contract, shall— 

7 (1) notify, in the same manner as the consumer 

8 entered into the contract, the consumer of— 

9 (A) the first automatic renewal (and of 

10 each automatic renewal thereafter) not less 

11 than 7 days (or a longer time period as deter12 mined appropriate by the Commission) before 

13 the commencement of the renewal period; and 

14 (B) how the consumer may cancel the con15 tract, which shall include— 

16 (i) an online mechanism for cancella17 tion provided by the person; and 

18 (ii) a toll-free telephone number, email 

19 address, postal mail address, or other cost20 effective, timely, and easy-to-use mecha21 nism for cancellation provided by the per22 son; 

23 (2) on an annual basis and notwithstanding the 

24 consumer’s consent to the initial term (or any subse25 quent term), obtain the consumer’s express informed 


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1 consent to renew the contract before charging the 

2 consumer for the renewal; and 

3 (3) notwithstanding the consumer’s consent to 

4 the initial term (or any subsequent term), in the 

5 event that the person has actual knowledge that the 

6 consumer has not used the good or service provided 

7 under the contract for a period of 6 consecutive 

8 months since the consumer’s most recent express in9 formed consent— 

10 (A) obtain the consumer’s express in11 formed consent to the automatic renewal before 

12 charging the consumer for the automatic re13 newal; and 

14 (B) notify the consumer that the consumer 

15 has a right to terminate the contract and re16 ceive a prorated refund for the remaining por17 tion of contract. 

18 (c) FREE TRIAL.—A person who sells a good or serv19 ice to a consumer pursuant to a contract that includes 

20 a free-to-pay conversion feature with a free trial period, 

21 shall— 

22 (1) notify, in the same manner as the consumer 

23 entered into the contract, the consumer of— 

24 (A) the automatic renewal not less than 7 

25 days (or a longer time period as determined apVerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2460.IH H2460

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1 propriate by the Commission) before the expira2 tion of the free trial period; and 

3 (B) how the consumer may cancel the con4 tract, which shall include— 

5 (i) an online mechanism for cancella6 tion provided by the person; and 

7 (ii) a toll-free telephone number, email 

8 address, postal mail address, or other cost9 effective, timely, and easy-to-use mecha10 nism for cancellation provided by the per11 son; and 

12 (2) notwithstanding the consumer’s consent to 

13 the free trial, obtain the consumer’s express in14 formed consent to the automatic renewal not less 

15 than 7 days (or a longer time period as determined 

16 appropriate by the Commission) before the expira17 tion of the free trial period and before charging the 

18 consumer for the automatic renewal. 

19 (d) AUTOMATIC RENEWAL VOID.—In the case of a 

20 violation of subsection (a), (b), or (c)— 

21 (1) the applicable automatic renewal provision 

22 shall be void, and the contract shall terminate upon 

23 the occurrence of such violation; and 

24 (2) the person who violated subsection (a), (b), 

25 or (c) shall provide the consumer with a refund for 


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1 all amounts paid by the consumer due to such viola2 tion. 

3 (e) DARK PATTERNS.—With respect to a contract 

4 that includes a free-to-pay conversion or negative option 

5 feature or any other automatic renewal provision, a con6 sumer’s consent obtained through the use of dark patterns 

7 shall not be considered express informed consent. 

8 (f) EXEMPTIONS.—The requirements under sub9 sections (a), (b), (c), and (d) shall not apply to a service 

10 contract or any other person or contract determined ap11 propriate by the Commission. 

12 (g) EFFECTIVE DATE.—The requirements under this 

13 section shall take effect on the date that is 1 year after 

14 the date of enactment of this Act. 

15 SEC. 3. ENFORCEMENT BY THE COMMISSION. 

16 (a) UNFAIR OR DECEPTIVE ACTS OR PRACTICES.— 

17 A violation of section 2 or a rule promulgated under this 

18 Act shall be treated as a violation of a rule defining an 

19 unfair or a deceptive act or practice under section 

20 18(a)(1)(B) of the Federal Trade Commission Act (15 

21 U.S.C. 57a(a)(1)(B)). 

22 (b) POWERS OF THE COMMISSION.— 

23 (1) IN GENERAL.—The Commission shall en24 force this Act in the same manner, by the same 

25 means, and with the same jurisdiction, powers, and 


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1 duties as though all applicable terms and provisions 

2 of the Federal Trade Commission Act (15 U.S.C. 41 

3 et seq.) were incorporated into and made a part of 

4 this Act. 

5 (2) PRIVILEGES AND IMMUNITIES.—Any person 

6 who violates section 2 or a rule promulgated under 

7 this Act shall be subject to the penalties and entitled 

8 to the privileges and immunities provided in the 

9 Federal Trade Commission Act (15 U.S.C. 41 et 

10 seq.). 

11 (3) AUTHORITY PRESERVED.—Nothing in this 

12 Act shall be construed to limit the authority of the 

13 Commission under any other provision of law. 

14 (4) RULEMAKING.—The Commission shall pro15 mulgate in accordance with section 553 of title 5, 

16 United States Code, such rules as may be necessary 

17 to carry out this Act, or to prevent unfair or decep18 tive acts or practices regarding free trials, automatic 

19 renewals, or other contracts under which a con20 sumer’s silence or failure to take an affirmative ac21 tion to reject goods or services or to cancel an agree22 ment is interpreted by the seller as acceptance of the 

23 offer. 

24 SEC. 4. DEFINITIONS. 

25 In this Act: 


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1 (1) COMMISSION.—The term ‘‘Commission’’ 

2 means the Federal Trade Commission. 

3 (2) CONSUMER.—The term ‘‘consumer’’ means 

4 any person who seeks or acquires, by purchase or 

5 lease, any goods or services. 

6 (3) DARK PATTERNS.—The term ‘‘dark pat7 terns’’ means a user interface that has the substan8 tial effect of subverting or impairing user autonomy, 

9 decision making, or choice. 

10 (4) FREE-TO-PAY CONVERSION.—The term 

11 ‘‘free-to-pay conversion’’ has the meaning given that 

12 term in section 310.2 of title 16, Code of Federal 

13 Regulations. 

14 (5) NEGATIVE OPTION FEATURE.—The term 

15 ‘‘negative option feature’’ has the meaning given 

16 that term in section 310.2 of title 16, Code of Fed17 eral Regulations. 

18 (6) SERVICE CONTRACT.—The term ‘‘service 

19 contract’’ means a contract or agreement for a sepa20 rately stated consideration for any duration— 

21 (A) to perform the repair, replacement, or 

22 maintenance of property or indemnification for 

23 service repair, replacement, or maintenance for 

24 the operational or structural failure of any 

25 motor vehicle or residential or other property 


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1 due to a defect in materials, workmanship, acci2 dental damage from handling, or normal wear 

3 and tear; or 

4 (B) to indemnify for the same, including 

5 towing, rental, or emergency road service or 

6 road hazard protection, and which may provide 

7 for the service repair, replacement, or mainte8 nance of property for damage resulting from 

9 power surges or interruption. 

Æ 


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