Sponsors (4)
The bill substantially strengthens consumer protections against surprise and manipulative recurring charges (clear consent, cancellation, and notice rules) at the cost of higher compliance and enforcement burdens that may raise business costs, reduce some low-cost offers, and require more administrative resources from regulators and states.
Consumers (broadly) will face far fewer surprise or unwanted recurring charges because merchants must get express, affirmative informed consent, provide clear written notice of negative-option terms, give simple cancellation mechanisms, and supply clear free-trial pricing/timing and reminder notices.
Federal enforcement is strengthened and clarified: the FTC is empowered to use clear statutory standards and existing regulatory references to stop violations, improving the government’s ability to enforce consumer protections.
State governments retain substantial authority: states can keep stronger consumer protections and may still bring enforcement actions on behalf of residents, preserving local remedies and allowing stronger state-level rules where desired.
Merchants (especially small businesses) will face increased compliance, recordkeeping, notification, and transaction costs to implement express-consent flows, reminders, and cancellation systems, which could be passed on to consumers as higher prices.
Some businesses may discontinue automatic renewals, low-price continuity plans, or free-to-paid trial offers rather than overhaul systems, reducing affordable trial options and convenient subscription choices for consumers.
Ambiguous language about UI designs that 'substantially subvert or impair' user autonomy could create legal uncertainty, prompting conservative design choices and extra legal review for merchants and designers.
Based on analysis of 6 sections of legislative text.
Bans negative-option charges unless merchants give clear disclosures, get express informed consent, retain proof, provide simple cancellation, and follow notice and renewal limits.
Introduced January 13, 2026 by Mark Takano · Last progress January 13, 2026
Prohibits merchants from charging consumers using "negative option" billing (automatic renewals, free-to-paid conversions, or continuity plans) unless the merchant gives clear, written disclosures, obtains the consumer’s express informed consent, keeps proof of that consent for at least three years, and provides an easy way to cancel. Requires advance and periodic notices, limits automatic renewals after introductory periods, and gives the Federal Trade Commission authority to write rules and enforce the law using its existing powers. Applies only to contracts entered into or changed more than one year after the law takes effect. States may sue for violations with notification to the FTC; federal law preempts state law only where there is a direct conflict and does not displace stronger state protections.