Consumer Protection: Automatic Renewal Transparency and Integrity Act
This act aims to protect citizens from unwanted charges for automatically renewing services. Companies will be required to clearly disclose renewal terms, simplify cancellation procedures, and obtain explicit consent for contract extensions, especially after free trials. This gives citizens more control over their spending and helps avoid unexpected financial burdens.
Key points
Companies must clearly disclose automatic renewal terms and cancellation procedures.
Before the first and each subsequent automatic renewal, companies must notify the customer at least 7 days in advance.
Companies must obtain explicit annual consent for contract renewal, even if initial consent was given.
If a customer hasn't used a service for 6 consecutive months, companies must re-obtain consent for renewal and inform them of their right to a prorated refund.
Companies must provide easy cancellation methods, including online options, toll-free numbers, email, or postal addresses.
Contracts renewed without meeting these requirements are void, and customers are entitled to a full refund of amounts paid due to such violations.
The act prohibits the use of 'dark patterns,' which are manipulative user interfaces designed to impair consumer autonomy or decision-making.
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