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Consumer Online Payment Transparency and Integrity Act
3/12/2024, 8:52 AM
Summary of Bill S 1091
The key provisions of the bill include requiring online payment processors to clearly disclose all fees associated with a transaction before the consumer completes the payment. This includes fees for processing, currency conversion, and any other charges that may apply. Additionally, the bill mandates that payment processors provide consumers with a detailed breakdown of how their payment will be processed and any potential risks involved.
Furthermore, the bill seeks to protect consumers from unauthorized charges by requiring payment processors to implement stronger security measures, such as two-factor authentication and fraud detection systems. This is aimed at reducing the risk of identity theft and fraudulent transactions. Overall, the Consumer Online Payment Transparency and Integrity Act is designed to empower consumers to make informed decisions when making online payments and to hold payment processors accountable for their practices. By increasing transparency and implementing stronger security measures, the bill aims to create a more trustworthy and secure online payment environment for consumers.
Congressional Summary of S 1091
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.
