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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Consumer Online Pay-
ment Transparency and Integrity Act’’. 
SEC. 2. AUTOMATIC RENEWAL PROTECTIONS. 
(a) IN GENERAL.—A person who sells a good or serv-
ice 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 fea-
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ture or provision and the cancellation procedure clearly 
and conspicuously in the contract. 
(b) 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— 
(1) notify, in the same manner as the consumer 
entered into the contract, the consumer of— 
(A) the first automatic renewal (and of 
each automatic renewal thereafter) not less 
than 7 days (or a longer time period as deter-
mined appropriate by the Commission) before 
the commencement of the renewal period; and 
(B) how the consumer may cancel the con-
tract, which shall include— 
(i) an online mechanism for cancella-
tion provided by the person; and 
(ii) a toll-free telephone number, email 
address, postal mail address, or other cost- 
effective, timely, and easy-to-use mecha-
nism for cancellation provided by the per-
son; 
(2) on an annual basis and notwithstanding the 
consumer’s consent to the initial term (or any subse-
quent term), obtain the consumer’s express informed 
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propriate by the Commission) before the expira-
tion of the free trial period; and 
(B) how the consumer may cancel the con-
tract, which shall include— 
(i) an online mechanism for cancella-
tion provided by the person; and 
(ii) a toll-free telephone number, email 
address, postal mail address, or other cost- 
effective, timely, and easy-to-use mecha-
nism for cancellation provided by the per-
son; and 
(2) notwithstanding the consumer’s consent to 
the free trial, obtain the consumer’s express in-
formed consent to the automatic renewal not less 
than 7 days (or a longer time period as determined 
appropriate by the Commission) before the expira-
tion of the free trial period and before charging the 
consumer for the automatic renewal. 
(d) AUTOMATIC RENEWAL VOID.—In the case of a 
violation of subsection (a), (b), or (c)— 
(1) the applicable automatic renewal provision 
shall be void, and the contract shall terminate upon 
the occurrence of such violation; and 
(2) the person who violated subsection (a), (b), 
or (c) shall provide the consumer with a refund for 
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all amounts paid by the consumer due to such viola-
tion. 
(e) DARK PATTERNS.—With respect to a contract 
that includes a free-to-pay conversion or negative option 
feature or any other automatic renewal provision, a con-
sumer’s consent obtained through the use of dark patterns 
shall not be considered express informed consent. 
(f) EXEMPTIONS.—The requirements under sub-
sections (a), (b), (c), and (d) shall not apply to a service 
contract or any other person or contract determined ap-
propriate by the Commission. 
(g) EFFECTIVE DATE.—The requirements under this 
section shall take effect on the date that is 1 year after 
the date of enactment of this Act. 
SEC. 3. ENFORCEMENT BY THE COMMISSION. 
(a) UNFAIR OR DECEPTIVE ACTS OR PRACTICES.— 
A violation of section 2 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 
18(a)(1)(B) of the Federal Trade Commission Act (15 
U.S.C. 57a(a)(1)(B)). 
(b) POWERS OF THE COMMISSION.— 
(1) IN GENERAL.—The Commission shall en-
force this Act in the same manner, by the same 
means, and with the same jurisdiction, powers, and 
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duties as though all applicable terms and provisions 
of the Federal Trade Commission Act (15 U.S.C. 41 
et seq.) were incorporated into and made a part of 
this Act. 
(2) PRIVILEGES AND IMMUNITIES.—Any person 
who violates section 2 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 (15 U.S.C. 41 et 
seq.). 
(3) AUTHORITY PRESERVED.—Nothing in this 
Act shall be construed to limit the authority of the 
Commission under any other provision of law. 
(4) RULEMAKING.—The Commission shall pro-
mulgate in accordance with section 553 of title 5, 
United States Code, such rules as may be necessary 
to carry out this Act, or to prevent unfair or decep-
tive acts or practices regarding free trials, automatic 
renewals, or other contracts under which a con-
sumer’s silence or failure to take an affirmative ac-
tion to reject goods or services or to cancel an agree-
ment is interpreted by the seller as acceptance of the 
offer. 
SEC. 4. DEFINITIONS. 
In this Act: 
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(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Trade Commission. 
(2) CONSUMER.—The term ‘‘consumer’’ means 
any person who seeks or acquires, by purchase or 
lease, any goods or services. 
(3) DARK
PATTERNS.—The term ‘‘dark pat-
terns’’ means a user interface that has the substan-
tial effect of subverting or impairing user autonomy, 
decision making, or choice. 
(4) FREE-TO-PAY
CONVERSION.—The term 
‘‘free-to-pay conversion’’ has the meaning given that 
term in section 310.2 of title 16, Code of Federal 
Regulations. 
(5) NEGATIVE
OPTION
FEATURE.—The term 
‘‘negative option feature’’ has the meaning given 
that term in section 310.2 of title 16, Code of Fed-
eral Regulations. 
(6) SERVICE
CONTRACT.—The term ‘‘service 
contract’’ means a contract or agreement for a sepa-
rately stated consideration for any duration— 
(A) to perform the repair, replacement, or 
maintenance of property or indemnification for 
service repair, replacement, or maintenance for 
the operational or structural failure of any 
motor vehicle or residential or other property 
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due to a defect in materials, workmanship, acci-
dental damage from handling, or normal wear 
and tear; or 
(B) to indemnify for the same, including 
towing, rental, or emergency road service or 
road hazard protection, and which may provide 
for the service repair, replacement, or mainte-
nance of property for damage resulting from 
power surges or interruption. 
Æ 
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