Pennsylvania HB 1299: An Act amending the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law, providing for unlawful retention policy.

Bill Text

PRIOR PRINTER'S NO. 1483 PRINTER'S NO. 1876
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1299
Session of
2025
INTRODUCED BY CIRESI, KHAN, SANCHEZ, BOROWSKI, McNEILL, DIAMOND,
PIELLI, HILL-EVANS, GUENST, HADDOCK, DONAHUE, FREEMAN,
SCHLOSSBERG, HOHENSTEIN, FIEDLER, HARKINS, WARREN, KENYATTA,
CEPEDA-FREYTIZ, O'MARA, BELLMON, JAMES, GALLAGHER, OTTEN,
CERRATO, GREEN, WAXMAN AND RIVERA, APRIL 23, 2025
AS REPORTED FROM COMMITTEE ON COMMUNICATIONS AND TECHNOLOGY,
HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 10, 2025
AN ACT
Amending the act of December 17, 1968 (P.L.1224, No.387),
entitled "An act prohibiting unfair methods of competition
and unfair or deceptive acts or practices in the conduct of
any trade or commerce, giving the Attorney General and
District Attorneys certain powers and duties and providing
penalties," providing for unlawful retention policy.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of December 17, 1968 (P.L.1224, No.387),
known as the Unfair Trade Practices and Consumer Protection Law,
is amended by adding a section to read:
Section 3.2. Unlawful Retention Policy.--(a) A business
entity that makes automatic renewal offers or continuous service
offers for goods or services to consumers shall:
(1) Provide an acknowledgment to a consumer disclosing the
automatic renewal offer terms or continuous service offer terms,
the cancellation policy and information regarding how to cancel
the goods or services in a manner that is capable of being
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retained by the consumer. If the automatic renewal offer or
continuous service offer includes a free gift or trial, the
acknowledgment shall include a clear and conspicuous explanation
of the price that will be charged after the trial ends or the
manner in which the pricing will change upon conclusion of the
trial, disclose how to cancel the goods or services , provide the
deadline by which the consumer must act to stop or prevent
charges and allow the consumer to cancel the goods or services
before the consumer pays for the goods or services.
(2) Disclose the automatic renewal offer or continuous
service offer to a consumer in a contract or a contract offer in
a clear and conspicuous manner .
(3) A llow a consumer who accepts the automatic renewal offer
or a continuous service offer online to terminate the acceptance
of the goods or services exclusively online . A business entity
may allow a consumer who accepted an automatic renewal or
continuous service offer to terminate the automatic renewal
offer or continuous service offer under this clause by
electronic mail formatted and provided by the business entity
without additional information, or through a link to a website
or other online service the consumer can use to cancel.
(4) In the case of a material change in the terms of the
automatic renewal offer or continuous service offer, provide a
consumer with a clear and conspicuous notice of the material
change and information regarding how to cancel the goods or
services in a manner that is capable of being retained by the
consumer.
(5) Not intentionally misrepresent the terms of the
automatic renewal offer or continuous service offer or any
material fact related to the underlying good or service.
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(b) This section shall not apply to :
(1) A business entity that is subject to the act of December
21, 1989 (P.L.672, No.87), known as the "Health Club Act."
(2) A service provided by a business entity or its affiliate
for which the business entity or its affiliate is regulated by
the Federal Communications Commission, Federal Energy Regulatory
Commission or Pennsylvania Public Utility Commission.
(3) A contract subject to 66 Pa.C.S. Ch. 22 (relating to
natural gas competition) or 28 (relating to restructuring of
electric utility industry).
(4) AN ENTITY REGULATED BY THE INSURANCE DEPARTMENT.
(c) A violation of this section shall constitute unfair
methods of competition and unfair or deceptive acts or practices
and shall be subject to the enforcement provisions and private
rights of action specified in this act.
(d) As used in this section:
"Clear and conspicuous" means, in reference to text, type
larger than the surrounding text, or in contrasting type, font,
or color to the surrounding text of the same size, or set off
from the surrounding text of the same size by symbols or other
marks, in a manner that clearly calls attention to the language.
"Consumer" means an individual who obtains or has obtained
goods or services for use primarily for personal, family or
household purposes.
Section 2. This act shall take effect in 60 180 days.
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