Page:United States Statutes at Large Volume 124.djvu/3645

 124 STAT. 3619 PUBLIC LAW 111–345—DEC. 29, 2010 acquired consumers’ billing information from the initial mer- chant through ‘‘data pass’’, millions of consumers were unaware they had been enrolled in membership clubs. (7) The use of a ‘‘data pass’’ process defied consumers’ expectations that they could only be charged for a good or a service if they submitted their billing information, including their complete credit or debit card numbers. (8) Third party sellers used a free trial period to enroll members, after which they periodically charged consumers until consumers affirmatively canceled the memberships. This use of ‘‘free-to-pay conversion’’ and ‘‘negative option’’ sales took advantage of consumers’ expectations that they would have an opportunity to accept or reject the membership club offer at the end of the trial period. SEC. 3. PROHIBITIONS AGAINST CERTAIN UNFAIR AND DECEPTIVE INTERNET SALES PRACTICES. (a) REQUIREMENTS FOR CERTAIN INTERNET-BASED SALES.—It shall be unlawful for any post-transaction third party seller to charge or attempt to charge any consumer’s credit card, debit card, bank account, or other financial account for any good or service sold in a transaction effected on the Internet, unless— (1) before obtaining the consumer’s billing information, the post-transaction third party seller has clearly and conspicuously disclosed to the consumer all material terms of the transaction, including— (A) a description of the goods or services being offered; (B) the fact that the post-transaction third party seller is not affiliated with the initial merchant, which may include disclosure of the name of the post-transaction third party in a manner that clearly differentiates the post- transaction third party seller from the initial merchant; and (C) the cost of such goods or services; and (2) the post-transaction third party seller has received the express informed consent for the charge from the consumer whose credit card, debit card, bank account, or other financial account will be charged by— (A) obtaining from the consumer— (i) the full account number of the account to be charged; and (ii) the consumer’s name and address and a means to contact the consumer; and (B) requiring the consumer to perform an additional affirmative action, such as clicking on a confirmation button or checking a box that indicates the consumer’s consent to be charged the amount disclosed. (b) PROHIBITION ON DATA-PASS USED TO FACILITATE CERTAIN DECEPTIVE INTERNET SALES TRANSACTIONS.—It shall be unlawful for an initial merchant to disclose a credit card, debit card, bank account, or other financial account number, or to disclose other billing information that is used to charge a customer of the initial merchant, to any post-transaction third party seller for use in an Internet-based sale of any goods or services from that post- transaction third party seller. 15 USC 8402.