Consumer Online Payment Transparency and Integrity Act | ChamberLight
Bills · S 2266
IN COMMITTEE· 119TH CONGRESS
Senate BillS 2266Commerce
Consumer Online Payment Transparency and Integrity Act
INTRO JUL 14· LAST ACTION JUL 14
READING
6MIN
COSPONSORS
11
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
This bill matters because it addresses a common frustration for many consumers: being unknowingly charged for subscriptions they forgot about, no longer use, or found difficult to cancel. In an economy increasingly reliant on subscription services and recurring payments, these protections aim to put more control back into the hands of the consumer. If this bill becomes law, consumers could expect fewer surprise charges and a simpler process for managing their digital subscriptions, leading to greater financial clarity and less hassle.
Without this bill, companies can continue to rely on consumers forgetting about free trials or automatic renewals, or making cancellation processes difficult, which can lead to significant cumulative costs for individuals. It tackles issues like "subscription trap" where companies make it easy to sign up but hard to cancel. By setting clear rules for disclosure, notification, and consent, the bill intends to foster more ethical business practices in the online subscription market.
KEY PROVISIONS
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PROVISION 01
Requires clear and conspicuous disclosure of automatic renewal, free-to-pay conversion, and negative option features, as well as cancellation procedures, directly within the contract.
This ensures consumers are aware of recurring charges and how to stop them from the very beginning.
PROVISION 02
Mandates that businesses notify consumers at least 7 days before the first and all subsequent automatic renewals, providing clear instructions on how to cancel, including an online cancellation method.
This prevents surprise charges and provides an easy way for consumers to opt out of unwanted renewals.
PROVISION 03
Requires businesses to obtain a consumer's express informed consent annually before charging for an automatic renewal, and again if they know the consumer hasn't used the service for six months.
This is a significant shift, ensuring active, ongoing consent for recurring charges rather than relying on passive enrollment.
PROVISION 04
Stipulates that consent obtained through "dark patterns" (manipulative user interfaces) will not be considered valid "express informed consent."
This targets deceptive design practices used to trick consumers into signing up or prevent them from canceling.
PROVISION 05
Declares that any automatic renewal provision violating the bill's requirements will be void, terminating the contract, and entitling the consumer to a full refund for amounts paid due to the violation.
This provides a strong enforcement mechanism and direct financial protection for consumers against non-compliant companies.
This bill matters because it addresses a common frustration for many consumers: being unknowingly charged for subscriptions they forgot about, no longer use, or found difficult to cancel. In an economy increasingly reliant on subscription services and recurring payments, these protections aim to put more control back into the hands of the consumer. If this bill becomes law, consumers could expect fewer surprise charges and a simpler process for managing their digital subscriptions, leading to greater financial clarity and less hassle.
Without this bill, companies can continue to rely on consumers forgetting about free trials or automatic renewals, or making cancellation processes difficult, which can lead to significant cumulative costs for individuals. It tackles issues like "subscription trap" where companies make it easy to sign up but hard to cancel. By setting clear rules for disclosure, notification, and consent, the bill intends to foster more ethical business practices in the online subscription market.
KEY PROVISIONS
AI-extracted
high
Requires clear and conspicuous disclosure of automatic renewal, free-to-pay conversion, and negative option features, as well as cancellation procedures, directly within the contract.
This ensures consumers are aware of recurring charges and how to stop them from the very beginning.
high
Mandates that businesses notify consumers at least 7 days before the first and all subsequent automatic renewals, providing clear instructions on how to cancel, including an online cancellation method.
This prevents surprise charges and provides an easy way for consumers to opt out of unwanted renewals.
high
Requires businesses to obtain a consumer's express informed consent annually before charging for an automatic renewal, and again if they know the consumer hasn't used the service for six months.
This is a significant shift, ensuring active, ongoing consent for recurring charges rather than relying on passive enrollment.
med
Stipulates that consent obtained through "dark patterns" (manipulative user interfaces) will not be considered valid "express informed consent."
This targets deceptive design practices used to trick consumers into signing up or prevent them from canceling.
high
Declares that any automatic renewal provision violating the bill's requirements will be void, terminating the contract, and entitling the consumer to a full refund for amounts paid due to the violation.
This provides a strong enforcement mechanism and direct financial protection for consumers against non-compliant companies.
Contract void, full refund for amounts paid due to violation, subject to enforcement under Federal Trade Commission Act which includes civil penalties.
Person (company or individual) who violates automatic renewal or free trial protections.
GLOSSARY
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Automatic renewal provision
A part of a contract that says a subscription or service will automatically continue for another period (and often charge you again) unless you specifically cancel it.
Free-to-pay conversion
When a free trial period for a service or product automatically changes into a paid subscription unless the consumer cancels before the trial ends.
Negative option feature
A contract term where a seller interprets a consumer's silence or failure to actively reject goods or services as their agreement to buy or continue a service, often leading to recurring charges.
Express informed consent
Clear and active agreement from a consumer after they have been given all the important information in an easy-to-understand way, without being pressured or tricked.
Dark patterns
Website or app designs that manipulate users into making choices they might not otherwise make, such as signing up for subscriptions or giving away personal information.
Commission
Refers to the Federal Trade Commission (FTC), a government agency that protects consumers by stopping unfair, deceptive, or fraudulent business practices.
Service contract
ACTION TIMELINE
2 EVENTS
JUL 14, 25
Introduced in Senate
INTROREFERRAL
JUL 14, 25
Read twice and referred to the Committee on Commerce, Science, and Transportation.
An agreement, usually for an additional cost, to repair, replace, or maintain a product like a car or home appliance, often covering defects or wear and tear, and typically exempt from some automatic renewal rules.
