Summary

Protects consumers from recurring “negative option” charges by requiring clear disclosure of key contract terms, obtaining express informed consent before charging, keeping proof of consent, and providing an easy cancellation mechanism. It also requires extra notices for trials that convert into paid subscriptions and periodic reminders while a recurring contract is active. Gives the Federal Trade Commission primary enforcement authority (treating violations as unfair or deceptive acts), preserves the FTC’s existing powers, and permits State attorneys general to sue on behalf of residents with specified notice and limitation rules; state laws that provide greater consumer protections remain in effect. The law applies only to contracts entered into or changed on or after one year after enactment.

Key Points

• Requires clear disclosure of key terms and express informed consent before merchants may start recurring charges.
• Mandates an easy, simple cancellation mechanism and ongoing reminders for active negative‑option contracts.
• Adds special notice requirements and protections for free‑to‑pay trials that convert to paid subscriptions.
• Treats violations as unfair or deceptive acts under the FTC Act and gives the FTC full enforcement powers, including rulemaking.
• Allows State attorneys general to sue on behalf of residents, subject to notice requirements and limits while federal enforcement is ongoing.
• Preempts State law only to the extent of direct conflicts; State laws providing greater protections remain in force.
• Defines core terms (automatic renewal, negative option, express informed consent, merchant of record, etc.) to reduce ambiguity.
• Only applies to contracts entered into or amended on or after one year after enactment (gives businesses time to comply).

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