The Consumer Online Payment Transparency and Integrity Act strengthens protections for consumers dealing with automatic renewal services, free trials that convert to paid subscriptions, and negative option features (where silence or inaction equals agreement to pay). Companies must clearly disclose these terms upfront and provide consumers at least seven days' advance notice before charging them, along with simple cancellation methods including online options and toll-free numbers. Importantly, companies must obtain fresh consent annually from customers and cannot use deceptive design tricks called "dark patterns" to trap consumers into unwanted charges. If companies violate these rules, the automatic renewal is voided and customers get full refunds for improperly charged amounts. The Federal Trade Commission will enforce the law and can issue penalties for violations, with the requirements taking effect one year after enactment. The bill exempts service contracts like car warranties and gives the FTC flexibility to adjust rules as needed.
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