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A05814
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, O'MARA,
TAKAC AND PISCIOTTANO, MARCH 7, 2023
AS REPORTED FROM COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY
AND UTILITIES, HOUSE OF REPRESENTATIVES, AS AMENDED,
SEPTEMBER 30, 2024
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
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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 PRICING 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
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change and information regarding how to cancel the goods or
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) (1) A SERVICE PROVIDED BY A BUSINESS 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) (2) A CONTRACT SUBJECT TO 66 PA.C.S. CH. 22 (RELATING TO
NATURAL GAS COMPETITION) OR 28 (RELATING TO RESTRUCTURING OF
ELECTRIC UTILITY INDUSTRY).
(c) A violation of this section shall constitute unfair
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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