What does Preamble of Unsubscribe Act of 2025 do?

This bill, formally titled 'To increase consumer protection with respect to negative options in all media, including on the internet, and for other purposes,' aims to increase consumer protection. The bill's scope includes all media, including the internet.

What does SHORT TITLE. of Unsubscribe Act of 2025 do?

This bill is formally titled the Unsubscribe Act of 2025.

What does INCREASED CONSUMER PROTECTION WITH RESPECT TO NEGATIVE OPTIONS. of Unsubscribe Act of 2025 do?

This section establishes requirements for merchants of record regarding negative option contracts, which involve charging consumers unless they actively opt out. Merchants must clearly and conspicuously disclose all material terms of the contract before receiving payment and obtain express informed consent from consumers. Negative option contracts are limited in duration after a preliminary period, and renewal requires further express informed consent. Consumers must be provided with a simple mechanism to cancel negative option contracts electronically or through the same means the contract was entered into. For 'free-to-pay' conversion contracts, merchants must provide specific notifications about pricing and obtain consent before charging consumers. Merchants must provide regular notifications to consumers about the terms of their negative option contracts and provide direct access to cancellation information. The Commission will determine the frequency of these regular notifications, but they must occur at least annually.

What does ENFORCEMENT. of Unsubscribe Act of 2025 do?

This section outlines enforcement mechanisms for the Act, both by the Federal Trade Commission (FTC) and by individual states. The FTC can enforce this Act in the same manner as it enforces the Federal Trade Commission Act, utilizing its existing jurisdiction, powers, and duties. Violations of this Act are treated as violations of an unfair or deceptive act or practice under the Federal Trade Commission Act. States can bring civil actions on behalf of their residents if they believe state interests have been threatened by a violation of the Act. Before initiating a civil action, states must generally provide written notice to the FTC, including a copy of the complaint. The FTC has the authority to intervene in state-initiated civil actions and appeal decisions. During the pendency of a federal action against a defendant, states are prohibited from bringing similar actions against that defendant for the same violations. States retain their authority to conduct investigations and compel evidence under their own state laws.

What does PREEMPTION OF DIRECTLY CONFLICTING STATE LAWS. of Unsubscribe Act of 2025 do?

This section clarifies that the Act does not preempt state laws. State laws are preempted only to the extent they conflict with the Act. A state law providing additional consumer protections is not considered a conflict. Differences in time frames for requirements between federal and state law are considered conflicts.

What does DEFINITIONS. of Unsubscribe Act of 2025 do?

This section defines key terms used throughout the Act. "Automatic renewal contract" means a contract automatically renewed unless the consumer opts out. The "Commission" is defined as the Federal Trade Commission. A "continuity plan contract" involves periodic shipments or services unless the consumer instructs otherwise. "Express informed consent" requires an affirmative action, like clicking a button, to consent to a negative option, excluding pre-checked boxes or manipulative interfaces. "Free-to-pay conversion contract" includes an introductory period with discounted or free goods/services followed by increased charges. An "introductory period" is a preliminary period where consumers receive goods/services at a reduced cost or for free, with subsequent price increases. "Merchant of record" is a person entering into a financial contract with a consumer. "Negative option" interprets consumer silence or inaction as acceptance or renewal. A "negative option contract" encompasses various contract types including automatic renewal, continuity plans, and free-to-pay conversions. "Notification" requires clear, conspicuous, and concise written statements of negative option terms, including cancellation procedures. The "preliminary period" precedes when a negative option takes effect. A "pre-notification negative option plan contract" involves periodic notices and automatic delivery/payment unless rejected by the consumer.

What does EFFECTIVE DATE. of Unsubscribe Act of 2025 do?

This Act applies to contracts entered into or amended after a one-year period. The effective date is one year after the date of enactment of this Act.

Back to bills

Unsubscribe Act of 2025

Last updated: 7/10/2025 · Introduced: 7/10/2025

Author: Brian Schatz (D-HI)

TL;DR (AI)

The Unsubscribe Act of 2025 establishes new requirements for businesses using 'negative option' contracts—where consumers are charged unless they actively opt out—requiring clear disclosures, express informed consent, and simple cancellation mechanisms.
The Federal Trade Commission (FTC) and individual states are empowered to enforce the Act, with states able to bring civil actions and the FTC retaining its existing enforcement authority.
While the Act preempts only directly conflicting state laws, it does not prevent states from enacting laws that provide additional consumer protections.

119th Congressin committeeHR. 7048(In Committee)Official page

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Includes provisions on preamble, short title., and 5 more.

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