S. 2266

119th CONGRESS 1st Session

To provide for automatic renewal protections, and for other purposes.

IN THE SENATE OF THE UNITED STATES · July 14, 2025 · Sponsor: Mr. Van Hollen · Committee: Committee on Commerce, Science, and Transportation

Table of contents

• S. 2266
  • SEC. 1. Short title
  • SEC. 2. Automatic renewal protections
  • SEC. 3. Enforcement by the Commission
  • SEC. 4. Definitions

SEC. 1. Short title

• This Act may be cited as the Consumer Online Payment Transparency and Integrity Act.

SEC. 2. Automatic renewal protections

• (a) In general
  • A person who sells a good or service 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 feature 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—
    • notify, in the same manner as the consumer entered into the contract, the consumer of—
      • the first automatic renewal (and of each automatic renewal thereafter) not less than 7 days (or a longer time period as determined appropriate by the Commission) before the commencement of the renewal period; and
      • how the consumer may simply cancel the contract, which shall include—
        • (i) an online mechanism for cancellation 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 mechanism for cancellation provided by the person;
    • on an annual basis and notwithstanding the consumer’s consent to the initial term (or any subsequent term), obtain the consumer’s express informed consent to renew the contract before charging the consumer for the automatic renewal; and
    • notwithstanding the consumer's consent to the initial term (or any subsequent term), in the event that the person has actual knowledge that the consumer has not used the good or service provided under the contract for a period of 6 consecutive months since the consumer's most recent express informed consent—
      • obtain the consumer's express informed consent to the automatic renewal before charging the consumer for the automatic renewal; and
      • notify the consumer that the consumer has a right to terminate the contract and receive a prorated refund for the remaining portion of the contract.
• (c) Free trial
  • A person who sells a good or service to a consumer pursuant to a contract that includes a free-to-pay conversion feature with a free trial period, shall—
    • notify, in the same manner as the consumer entered into the contract, the consumer—
      • that the consumer will be charged for the good or service not less than 7 days (or a longer time period as determined appropriate by the Commission) before the expiration of the free trial period; and
      • of how the consumer may simply cancel the contract, which shall include—
        • (i) an online mechanism for cancellation 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 mechanism for cancellation provided by the person; and
    • notwithstanding the consumer’s consent to the free trial, obtain the consumer’s express informed consent to the applicable charge for the good or service not less than 7 days (or a longer time period as determined appropriate by the Commission) before the expiration 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)—
    • the applicable automatic renewal provision shall be void, and the contract shall terminate upon the occurrence of such violation; and
    • the person who violated subsection (a), (b), or (c) shall provide the consumer with a refund for all amounts paid by the consumer due to such violation.
• (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 consumer's consent obtained through the use of dark patterns shall not be considered express informed consent.
• (f) Exemptions
  • The requirements under subsections (a), (b), (c), and (d) shall not apply to a service contract or any other person or contract determined appropriate 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

• 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)
  • Unfair or deceptive acts or practices
• (b) Powers of the Commission
  • Powers of the Commission
  • (1) In general
    • The Commission shall enforce this Act in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the () were incorporated into and made a part of this Act. 15 U.S.C. 41 et seq.
    • In general
  • (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.
    • Privileges and immunities
  • (3) Authority preserved
    • Nothing in this Act shall be construed to limit the authority of the Commission under any other provision of law.
    • Authority preserved
  • (4) Rulemaking
    • The Commission shall promulgate 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 deceptive acts or practices regarding free trials, automatic renewals, or other contracts under which a consumer's silence or failure to take an affirmative action to reject goods or services or to cancel an agreement is interpreted by the seller as acceptance of the offer.

SEC. 4. Definitions

• In this Act:
  • The term Commission means the Federal Trade Commission.
  • The term consumer means any person who seeks or acquires, by purchase or lease, any goods or services.
  • The term dark patterns means a user interface that has the substantial effect of subverting or impairing user autonomy, decision making, or choice.
  • The term free-to-pay conversion has the meaning given that term in section 310.2 of title 16, Code of Federal Regulations.
  • The term negative option feature has the meaning given that term in section 310.2 of title 16, Code of Federal Regulations.
  • The term service contract means a contract or agreement for a separately stated consideration for any duration—
  • The term , with respect to a contract, means the mechanism for cancellation of such contract is at least as easy to use as the mechanism the consumer used to consent to such contract. simply cancel