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Consumer Online Payment Transparency and Integrity Act
12/15/2023, 3:56 PM
Summary of Bill HR 2460
Under this legislation, online payment platforms must disclose any fees or charges that may apply to transactions, as well as any potential risks or limitations that consumers should be aware of. This information must be presented in a clear and easily understandable manner, so that consumers can make informed decisions about using these services.
Additionally, the bill prohibits online payment platforms from engaging in deceptive practices, such as misleading consumers about the security of their transactions or the availability of certain services. Platforms found to be in violation of these provisions may face penalties and enforcement actions from regulatory authorities. Overall, the Consumer Online Payment Transparency and Integrity Act seeks to promote fairness and accountability in the online payment industry, ensuring that consumers are protected from fraudulent or misleading practices. By requiring greater transparency and honesty from online payment platforms, this legislation aims to build trust and confidence among consumers who rely on these services for their financial transactions.
Congressional Summary of HR 2460
Consumer Online Payment Transparency and Integrity Act
This bill requires the seller of a good or service that includes certain automatic renewal or free-to-pay conversion features to provide consumers with (1) advance notice of the renewal or conversion, (2) an online mechanism for canceling the contract for the good or service, and (3) additional contact information (e.g., toll-free telephone number) for canceling the contract.
Additionally, notwithstanding the consumer's consent to the initial term, the seller of a good or service that includes an automatic renewal contract must obtain the consumer's express informed consent to renew the contract on an annual basis prior to charging the consumer for the renewal.
Notwithstanding the consumer's consent to a free trial, the seller of a good or service that includes a free-to-pay conversion feature must obtain the consumer's express informed consent to renew the contract not less than seven days before the expiration of the free trial period and before charging the consumer for the renewal.
The bill provides for enforcement of these requirements by the Federal Trade Commission.
