Sponsors (12)
I'll give you the short version of this bill.
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Requires sellers to clearly disclose and get express informed consent before charging consumers for automatic renewals, negative-option offers, or converting free trials to paid services. Consent obtained through deceptive “dark patterns” is invalid, noncompliant renewals must be voided and refunded, and the FTC enforces the rules and may issue implementing regulations; most provisions take effect one year after enactment.
A person who sells a good or service to a consumer under a contract that includes a free-to-pay conversion, negative option feature, or any other automatic renewal provision must disclose that feature and the cancellation procedure clearly and conspicuously in the contract.
For contracts that will automatically renew unless the consumer cancels, the seller must notify the consumer, in the same manner the consumer entered into the contract, of the first automatic renewal (and each renewal thereafter) at least 7 days before the start of the renewal period (or a longer time if the Commission determines).
The seller must notify the consumer how they may simply cancel the contract; this must include an online cancellation mechanism provided by the seller and a toll-free telephone number, email address, postal mail address, or other cost-effective, timely, and easy-to-use cancellation mechanism provided by the seller.
On an annual basis, and regardless of the consumer's prior consent to a term, the seller must obtain the consumer's express informed consent to renew the contract before charging the consumer for the automatic renewal.
If the seller has actual knowledge that the consumer has not used the good or service for 6 consecutive months since the consumer's most recent express informed consent, the seller must obtain the consumer's express informed consent before charging for the automatic renewal and must notify the consumer that they have the right to terminate the contract and receive a prorated refund for the remaining portion of the contract.
Who is affected and how:
Consumers: The law strengthens protections for anyone signing up for subscriptions, trial offers, or services with recurring charges. Consumers should see clearer notices, easier cancellation options, and refunds if charges were made without valid consent.
Businesses and sellers (including online retailers, subscription services, and app providers): Must update contract language, checkout flows, confirmations, and cancellation processes to provide clear disclosures and to obtain express informed consent. They must remove or redesign dark-pattern interfaces that try to trick users into consenting. Compliance will involve legal review, UX/product changes, and possible operational costs.
Digital platforms and app marketplaces: Platforms that host sellers or offer trial-to-paid conversions (app stores, marketplaces, streaming platforms) may need to change developer/store rules, checkout UI standards, and provide tools to support simple cancellations and disclosure compliance.
Federal Trade Commission (FTC): Responsible for rulemaking and enforcement; will need to prioritize guidance, issue rules defining terms (like dark patterns), and devote enforcement resources to monitor compliance and pursue violations.
Small businesses: May face higher relative compliance burden (design, legal, and operational changes), though the FTC can issue exemptions for specific contract types.
Broader effects:
Overall, the bill tightens consumer protections around recurring payments and shifts the burden to sellers and platforms to make renewals transparent and consent unambiguous.
Read twice and referred to the Committee on Commerce, Science, and Transportation.
Introduced July 14, 2025 by Christopher Van Hollen · Last progress July 14, 2025
Expand sections to see detailed analysis
Read twice and referred to the Committee on Commerce, Science, and Transportation.
Introduced in Senate