Sponsors (4)
The bill strengthens consumer protections against surprise negative‑option charges and creates clearer federal enforcement and rulemaking, but it raises compliance, recordkeeping, and legal‑uncertainty costs for businesses and states that could lead to higher prices, fewer promotions, and some enforcement delays.
Consumers nationwide will be protected from surprise negative‑option charges because companies must obtain affirmative, express informed consent, provide clear material terms (including cancellation mechanics and timing), give advance notice before free-to-paid conversions, and send periodic reminders while contracts remain in effect.
The Federal Trade Commission gains explicit authority to enforce the law and must issue rules through the Administrative Procedure Act, creating a clear federal enforcement path with public rulemaking and established remedies.
State attorneys general can bring enforcement suits on behalf of residents, giving consumers local enforcement options in addition to federal remedies.
Small businesses and merchants face materially higher compliance and administrative costs (redesigning consent flows, building notice/consent/timing systems, legal review), which are likely to be passed on to consumers in some markets.
Subscription service continuity could be disrupted because automatic renewals and conversions to paid service are restricted without renewed express consent, potentially interrupting services for subscribers unless companies implement active renewal steps.
Some businesses may eliminate or scale back low-cost or introductory offers that rely on negative‑option mechanics, reducing promotional options for consumers.
Based on analysis of 6 sections of legislative text.
Introduced January 13, 2026 by Mark Takano · Last progress January 13, 2026
Sets rules for businesses that use negative‑option offers (automatic renewals, free‑to‑paid conversions, continuity plans) so consumers must get clear disclosures and give affirmative, documented consent before being charged. It requires simple online cancellation, periodic and targeted notices, recordkeeping of consent, and specific notices for free‑to‑pay transitions. The Federal Trade Commission enforces the law and will write implementing rules; states retain enforcement powers but must notify the FTC before suing. The law takes effect one year after enactment for new or amended contracts.