Exclusive: Lawmakers revive bill to fight online "subscription traps"
Illustration: Gabriella Turrisi/Axios
Sen. Chris Van Hollen and Rep. Yvette Clarke on Monday will reintroduce legislation to protect consumers from what they call online "traps" and "scams."
Why it matters: Companies use dark patterns and unclear terms and services to make it hard for consumers to cancel subscriptions and end reoccurring charges.
Driving the news: The Consumer OPT-IN Act would require companies to get explicit consent from people before turning free trials into automatically renewing paid subscriptions.
- For products that someone hasn't been using for six months, companies would have to get consent to continue billing and allow that consumer to request a refund for the remainder of the contract.
- The bill would also give the FTC rulemaking authority over automatic renewals and dark patterns.
Catch up quick: A recent court decision vacated the FTC's "click-to-cancel" rule which would have made it easier for consumers to avoid unwanted subscriptions.
- Bill sponsors say the FTC's rule would have complemented their legislation.
What they're saying: "Too often, consumers find themselves unknowingly caught in a cycle of recurring charges for subscriptions that extend far beyond what they initially agreed to," Clarke said.
- Van Hollen: "Corporate special interests are pushing to preserve the status quo so they can pad their profits by keeping consumers locked into unwanted subscriptions, but we will keep fighting back."
