The Consumer Online Payment Transparency and Integrity Act (H.R. 4365) strengthens protections for consumers who sign up for free trials, automatic renewals, and subscription services. The bill requires companies to clearly disclose these features upfront, send reminders at least seven days before charging customers, and provide simple cancellation methods (online, phone, email, or mail) that are just as easy to use as the sign-up process. Companies must also obtain customer approval each year before renewing subscriptions and cannot use misleading design tactics—known as "dark patterns"—to trick people into staying enrolled. If a company violates these rules, the automatic renewal becomes void and customers must receive a full refund for charges stemming from the violation. The Federal Trade Commission will enforce the law, treating violations as deceptive business practices, and the requirements take effect one year after the bill becomes law, with some exemptions for service contracts determined appropriate by the FTC.
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