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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7048 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7048
To increase consumer protection with respect to negative options in all
media, including on the internet, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 13, 2026
Mr. Takano (for himself, Mr. Amodei of Nevada, and Mr. Magaziner)
introduced the following bill; which was referred to the Committee on
Energy and Commerce
_______________________________________________________________________
A BILL
To increase consumer protection with respect to negative options in all
media, including on the internet, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Unsubscribe Act of 2025''.
SEC. 2. INCREASED CONSUMER PROTECTION WITH RESPECT TO NEGATIVE OPTIONS.
(a) Disclosure of Negative Options.--It shall be unlawful for any
merchant of record to charge or attempt to charge a credit card, debit
card, bank account, or other financial account of any consumer, or
otherwise receive payment from any consumer, through a negative option,
unless the merchant of record clearly and conspicuously discloses all
material terms of the contract involved before receiving payment or
charging the consumer, or otherwise receiving payment, through such
negative option.
(b) Express Informed Consent for Negative Options.--
(1) Requirement.--It shall be unlawful for any merchant of
record to charge or attempt to charge a credit card, debit
card, bank account, or other financial account of any consumer,
or otherwise receive payment from any consumer, through a
negative option, unless the merchant of record obtains the
express informed consent of the consumer before receiving
payment or charging the consumer, or otherwise receiving
payment, through such negative option.
(2) Duration.--A merchant of record shall keep or maintain
verification of the express informed consent obtained pursuant
to paragraph (1) for not fewer than 3 years, unless such
merchant of record demonstrates by a preponderance of the
evidence that the merchant of record uses processes that ensure
a consumer may not technologically complete a transaction
without such express informed consent.
(c) Term Limitation for Negative Option Contracts.--After the
expiration of a preliminary period, it shall be unlawful for any
merchant of record to automatically renew or otherwise continue a
negative option contract with any consumer for a period that is greater
than the length of the preliminary period, unless such merchant of
record, at the time of such expiration, obtains the express informed
consent of the consumer to renew or otherwise continue such negative
option contract.
(d) Cancellation of Negative Option Contracts.--
(1) Online merchants.--In the case of a negative option
contract that is entered into electronically, it shall be
unlawful for any merchant of record to enter into such negative
option contract with any consumer unless such merchant of
record provides to the consumer a simple mechanism, including a
direct link to an electronic form, that enables the consumer to
submit a request to cancel such negative option contract
without requiring the consumer to take additional steps by any
means other than electronically.
(2) Other merchants.--In the case of a negative option
contract that is entered into through means other than
electronically, it shall be unlawful for any merchant of record
to enter into such negative option contract with any consumer
unless such negative option contract provides the consumer with
a simple mechanism for cancellation, in the same manner, and by
the same means, as such negative option contract was entered
into, or, if not practicable, through some other simple
mechanism for cancellation.
(e) Requirements for Free-to-pay Conversion Contracts.--It shall be
unlawful for any merchant of record to charge or attempt to charge a
credit card, debit card, bank account, or other financial account of
any consumer for any good or service sold under a free-to-pay
conversion contract, unless each of the following is met:
(1) Before completing the financial transaction, or
otherwise receiving payment, the merchant of record provides
the consumer with a notification of the terms of the negative
option contract and obtains the express informed consent of the
consumer to such terms, including the following terms:
(A) For an introductory period, the consumer will
receive the good or service at no cost or for a
discounted cost.
(B) The amount the consumer will be charged or
otherwise required to pay for the introductory period.
(C) The amount the consumer will be charged or
otherwise required to pay, on a recurring basis,
starting with the first financial transaction after the
introductory period.
(D) The total cost (or range of costs) the consumer
will be charged or otherwise required to pay through
the entire term of such contract (if such term is less
than 12 months) or cost information that enables the
consumer to determine the total cost for the subsequent
12 month period, to the extent known.
(2) Before the first charge, payment, or price increase
after the introductory period, the merchant of record provides
notification to the consumer about the upcoming charge,
payment, or increase and provides the consumer with--
(A) the terms of the negative option contract,
including the length of time required for the merchant
of record to complete any cancellation request; and
(B) direct access to information about the simple
mechanism for cancellation.
(f) Other Notification Requirements for Negative Option
Contracts.--
(1) General notification and access.--With respect to any
negative option contract entered into by a merchant of record
and a consumer, the merchant of record, at regular intervals as
determined by the Commission (but not less frequently than
annually) while such negative option contract remains in
effect, shall provide the consumer with--
(A) a notification of the terms of such negative
option contract; and
(B) direct access to information about the simple
mechanism for cancellation.
(2) Additional notification and access.--If a negative
option contract specifies a period of time during which the
merchant of record shall complete a cancellation request, not
fewer than 2 but not more than 7 days before the last day on
which the consumer may cancel such negative option contract
without incurring additional charges, the merchant of record
shall provide the consumer with the notification and access
required by paragraph (1).
SEC. 3. ENFORCEMENT.
(a) Enforcement by the Federal Trade Commission.--
(1) Unfair or deceptive acts or practices.--A violation of
this Act or a regulation promulgated thereunder shall be
treated as a violation of a rule defining an unfair or
deceptive act or practice under section 18(a)(1)(B) of the
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(2) Powers of the commission.--
(A) In general.--The Commission shall enforce this
Act in the same manner, by the same means, and with the
same jurisdiction, powers, and duties as though all
applicable terms and provisions of the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) were incorporated
into and made a part of this Act.
(B) Privileges and immunities.--Any person who
violates this Act or a regulation promulgated
thereunder shall be subject to the penalties and
entitled to the privileges and immunities provided in
the Federal Trade Commission Act (15 U.S.C. 41 et
seq.).
(C) Authority preserved.--Nothing in this Act shall
be construed to limit the authority of the Commission
under any other provision of law.
(D) Rulemaking.--The Commission shall promulgate in
accordance with section 553 of title 5, United States
Code, such rules as may be necessary to carry out this
Act.
(b) Enforcement by States.--
(1) In general.--If the attorney general of a State, or an
official or agency of a State, has reason to believe that an
interest of the residents of the State has been or is being
threatened or adversely affected by a practice that violates
this Act, the State may bring a civil action on behalf of the
residents of the State in an appropriate district court of the
United States to obtain appropriate relief.
(2) Rights of the commission.--
(A) Notice to the commission.--
(i) In general.--Except as provided in
clause (iii), an attorney general, official, or
agency of a State, before initiating a civil
action under paragraph (1), shall provide a
written notice to the Commission that the
attorney general, official, or agency intends
to bring such civil action.
(ii) Contents.--The notice required by
clause (i) shall include a copy of the
complaint to be filed to initiate the civil
action.
(iii) Exception.--If it is not feasible for
an attorney general, official, or agency of a
State to provide the notice required by clause
(i) before initiating a civil action under
paragraph (1), the attorney general, official,
or agency shall provide such notice to the
Commission immediately upon instituting the
civil action.
(B) Intervention by the commission.--The Commission
may--
(i) intervene in any civil action brought
by an attorney general, official, or agency of
a State under paragraph (1); and
(ii) upon intervening--
(I) be heard on all matters arising
in the civil action; and
(II) appeal a decision in the civil
action.
(C) Limitation on state action while federal action
is pending.--If the Commission or the Attorney General
of the United States has instituted a civil action for
violation of this Act (referred to in this subparagraph
as the ``Federal action''), no State attorney general,
official, or agency may bring an action under paragraph
(1) during the pendency of the Federal action against
any defendant named in the complaint in the Federal
action for any violation of such Act alleged in such
complaint.
(3) Rule of construction.--Nothing in this subsection may
be construed to prevent an attorney general, official, or
agency of a State from exercising the powers conferred on the
attorney general, official, or agency by the laws of the State
to conduct investigations, to administer oaths or affirmations,
or to compel the attendance of witnesses or the production of
documentary or other evidence.
SEC. 4. PREEMPTION OF DIRECTLY CONFLICTING STATE LAWS.
(a) In General.--Nothing in this Act may be construed to preempt,
displace, or supplant any State law, except to the extent that a
provision of State law conflicts with a provision of this Act, and then
only to the extent of the conflict.
(b) Greater Protection Under State Law.--For purposes of this
section, a provision of State law does not conflict with a provision of
this Act if such provision of State law provides additional protections
to consumers protected under this Act.
(c) Conflicting Time Frames.--Any difference between Federal and
State law in the time frame in which a requirement imposed on a person
shall be met shall be considered a conflict for purposes of subsection
(a).
SEC. 5. DEFINITIONS.
In this Act:
(1) Automatic renewal contract.--The term ``automatic
renewal contract'' means a contract between any merchant of
record and any consumer for the sale of goods or services that
is automatically renewed after a preliminary period, unless the
consumer instructs otherwise.
(2) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(3) Continuity plan contract.--The term ``continuity plan
contract'' means a contract between any merchant of record and
any consumer under which the consumer agrees to pay for
periodic shipments of goods or the provision of services,
unless the consumer instructs otherwise.
(4) Express informed consent.--
(A) In general.--The term ``express informed
consent'' means, with respect to an offer or agreement
for the sale of goods or services that includes a
negative option, an affirmative action taken by a
consumer, including clicking on a confirmation button
or checking a box, that--
(i) indicates the unambiguous consent of
the consumer to the negative option; and
(ii) is separate and apart from any action
taken by the consumer to indicate the initial
consent of the consumer to all of the material
terms of the offer or agreement (including to
be charged for the preliminary period), but may
occur at the same time as such initial consent.
(B) Exclusions.--The term ``express informed
consent'' shall not include--
(i) consent that is inferred through the
inactivity or silence of a consumer or the use
of pre-checked boxes with respect to an initial
charge or any recurring charge; or
(ii) consent obtained through a user
interface designed or manipulated to have the
substantial effect of subverting or impairing
user autonomy, decision-making, or choice.
(5) Free-to-pay conversion contract.--The term ``free-to-
pay conversion contract'' means a contract for the sale of
goods or services between any merchant of record and any
consumer that includes an introductory period.
(6) Introductory period.--The term ``introductory period''
means a preliminary period of a contract for the sale of goods
or services where--
(A) during such period, the consumer receives a
good or service at no charge or for a discounted cost;
and
(B) at the expiration of such period, the amount
the consumer will be charged or otherwise be required
to pay for the good or service is increased.
(7) Merchant of record.--The term ``merchant of record''
means a person who enters into a financial contract with a
consumer.
(8) Negative option.--The term ``negative option'' means a
provision of an offer or agreement for the sale of goods or
services under which the silence of a consumer or failure by a
consumer to take an affirmative action to reject the goods or
services or to cancel the agreement is interpreted by the
seller as acceptance of the offer or renewal of the agreement.
(9) Negative option contract.--The term ``negative option
contract'' means a contract that includes a negative option,
including--
(A) an automatic renewal contract;
(B) a continuity plan contract;
(C) a free-to-pay conversion contract;
(D) a pre-notification negative option plan
contract; and
(E) any combination of the contracts described in
subparagraphs (A) through (D).
(10) Notification.--The term ``notification'', when used
with respect to the terms of a contract, means a written
notification that clearly, conspicuously, and concisely states
all material terms of the negative option, including
information regarding the simple mechanism for cancellation and
the length of time required for a merchant of record to
complete any cancellation request.
(11) Preliminary period.--The term ``preliminary period''
means the period of a negative option contract prior to the
date on which a negative option takes effect.
(12) Pre-notification negative option plan contract.--The
term ``pre-notification negative option plan contract'' means a
contract between any merchant of record and any consumer under
which the consumer receives periodic notices offering goods or
services and, unless the consumer specifically rejects the
offer, the consumer automatically receives the goods and
services and agrees to pay for such goods and services.
(13) Simple mechanism.--The term ``simple mechanism'' means
the term described in section 425.6 of title 16, Code of
Federal Regulations, or any successor regulation.
SEC. 6. EFFECTIVE DATE.
This Act shall apply with respect to contracts entered into or
amended after the date that is 1 year after the date of the enactment
of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
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