Lawmakers Introduce Bicameral Bill to Protect Consumers From Online Free Trial Scams

Sen Chris Van Hollen (D-MD) and Rep Yvette Clarke (D-NY) introduced the Consumer Online Payment Transparency and Integrity Act (S.3298), or Consumer OPT-IN Act, to protect consumers from online free trial scams and deceptive marketing tactics. To do this, the Consumer OPT-In Act will:

• Require companies to get express informed consent from consumers before converting free trials into automatically renewing contracts and charging consumers;
• Require companies to notify consumers of the first automatic renewal and obtain express informed consent from consumers before automatically renewing long term contracts;
• Require that companies offering contracts that automatically renew on a short term basis get express informed consent from consumers annually;
• Require companies that have knowledge that a consumer isn’t using their products or service for 6 months to get the consumer’s express informed consent to continue billing, and allowing consumers to request a refund for the remaining portion of the contract;
• Provide consumers with refunds when violations occur;
• Give the FTC rulemaking authority over negative option contracts, automatic renewals, and dark patterns.