Consumer Protection Against Unwanted Automatic Subscription Renewals
This act aims to protect citizens from unknowingly incurring costs for automatically renewing services and subscriptions. It introduces new rules for clear disclosure of renewals, requiring consent for continued payments, and providing easy cancellation methods. This gives citizens greater control over their spending and helps them avoid unwanted charges.
Key points
Companies must clearly disclose automatic renewals and cancellation procedures.
Before each automatic renewal, companies must notify customers at least 7 days in advance and obtain their consent for continued payments.
If a customer has not used a service for 6 consecutive months, the company must re-obtain consent for renewal and inform them of their right to a prorated refund.
Consent obtained through "dark patterns" (manipulative user interfaces) will not be considered valid.
In case of violations, the automatic renewal provision is void, and the customer is entitled to a full refund of all amounts paid due to such violation.
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