Trial Engrossment of Amendment A05628 to House Bill 0116 P.N. 0099, Regular Session 2023-2024

A05628

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

116

Session of

2023

INTRODUCED BY CIRESI, DELLOSO, JAMES, GREEN, PROBST, HILL-EVANS,

McNEILL, GUENST, SCHLEGEL CULVER, HOHENSTEIN, SCOTT, HARKINS,

KINSEY, SANCHEZ, MADDEN, BURGOS, PIELLI, WARREN, HOWARD,

FIEDLER, D. WILLIAMS, B. MILLER, OTTEN, CERRATO AND O'MARA,

MARCH 7, 2023

REFERRED TO COMMITTEE ON COMMERCE, MARCH 7, 2023

AN ACT

Amending the act of December 17, 1968 (P.L.1224, No.387),

entitled "An act prohibiting unfair methods of competition

and unfair or deceptive acts or practices in the conduct of

any trade or commerce, giving the Attorney General and

District Attorneys certain powers and duties and providing

penalties," providing for unlawful retention policy.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of December 17, 1968 (P.L.1224, No.387),

known as the Unfair Trade Practices and Consumer Protection Law,

is amended by adding a section to read:

Section 3.2. Unlawful Retention Policy.--(a) A business

entity that makes automatic renewal offers or continuous service

offers for goods or services to consumers shall do all of the

following:

(1) Provide an acknowledgment to a consumer. The

acknowledgment shall disclose the automatic renewal offer terms

or continuous service offer terms, the cancellation policy and

information regarding how to cancel the goods or services in a

manner that is capable of being retained by the consumer. If the

automatic renewal offer or continuous service offer includes a

free gift or trial, the acknowledgment shall include a clear and

conspicuous explanation of the price that will be charged after

the trial ends or the manner in which the pr icing will change

upon conclusion of the trial, disclose how to cancel the goods

or services , provide the deadline by which the consumer must act

to stop or prevent charges and allow the consumer to cancel the

goods or services before the consumer pays for the goods or

services.

(2) Disclose the automatic renewal offer or continuous

service offer to a consumer in a contract or a contract offer in

bold face with a font size equal to the font size of the

surrounding text, or a font size of ten points, whichever is

greater. a clear and conspicuous manner, with a font size at

least equal to the font size of the surrounding text and in bold

face type .

(3) A llow a consumer who accepts the automatic renewal offer

or a continuous service offer over the Internet to terminate the

acceptance of the goods or services exclusively over the

Internet. A business entity may allow a consumer to terminate

the automatic renewal offer or continuous service offer under

this clause by electronic mail formatted and provided by the

business entity without requiring the consumer to provide

additional information.

(4) In the case of a material change in the terms of the

automatic renewal offer or continuous service offer, provide a

consumer with a clear and conspicuous notice of the material

change and information regarding how to cancel the goods or

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services in a manner that is capable of being retained by the

consumer.

(5) Not intentionally misrepresent the terms of the

automatic renewal offer or continuous service offer or any

material fact related to the underlying good or service.

(b) This section shall not apply to a business entity that

is subject to the act of December 21, 1989 (P.L.672, No.87),

known as the "Health Club Act." any of the following:

(1) A business entity that is subject to the act of December

21, 1989 (P.L.672, No.87), known as the "Health Club Act."

(2) A service provided by a bu siness entity or its affiliate

for which the business entity or its affiliate is regulated by

the Federal Communications Commission, Federal Energy Regulatory

Commission or Pennsylvania Public Utility Commission.

(3) A contract subject to 66 Pa.C.S. Ch. 22 (relating to

natural gas competition) or 28 (relating to restructuring of

electric utility industry).

methods of competition and unfair or deceptive acts or practices

and shall be subject to the enforcement provisions and private

rights of action specified in this act.

(d) As used in this section, the term "consumer" means an

individual who obtains or has obtained goods or services for use

primarily for personal, family or household purposes.

Section 2. This act shall take effect in 60 days.

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