An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Negative Option

A business practice where a customer agrees to buy a good or service, or a subscription renews, unless the customer actively takes steps to decline or cancel it. If the customer does nothing, they are charged or continue to be charged.

Express Informed Consent

Clear, active permission given by a consumer after receiving all necessary information about a contract, price, and terms. It means the consumer deliberately agreed, not just failed to opt-out.

Merchant of Record

The legal entity that processes a customer's payment and is responsible for the financial transaction, including fulfilling orders, handling taxes, and processing refunds.

Free-to-pay Conversion Contract

A type of negative option contract where a consumer initially receives a good or service for free or at a discounted rate for an introductory period, and then automatically transitions to a regular, paid subscription or charge unless they cancel.

Material Terms

The important conditions and details of a contract that could influence a consumer's decision to enter into it, such as price, duration, cancellation policy, and what is being purchased.