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.

PRINTER'S NO.       1483

                     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 AND GREEN, APRIL 23, 2025

     REFERRED TO COMMITTEE ON COMMUNICATIONS AND TECHNOLOGY,
        APRIL 23, 2025


                                    AN ACT
 1   Amending the act of December 17, 1968 (P.L.1224, No.387),
 2      entitled "An act prohibiting unfair methods of competition
 3      and unfair or deceptive acts or practices in the conduct of
 4      any trade or commerce, giving the Attorney General and
 5      District Attorneys certain powers and duties and providing
 6      penalties," providing for unlawful retention policy.
 7      The General Assembly of the Commonwealth of Pennsylvania
 8   hereby enacts as follows:
 9      Section 1.    The act of December 17, 1968 (P.L.1224, No.387),
10   known as the Unfair Trade Practices and Consumer Protection Law,
11   is amended by adding a section to read:
12      Section 3.2.    Unlawful Retention Policy.--(a)     A business
13   entity that makes automatic renewal offers or continuous service
14   offers for goods or services to consumers shall:
15      (1)   Provide an acknowledgment to a consumer disclosing the
16   automatic renewal offer terms or continuous service offer terms,
17   the cancellation policy and information regarding how to cancel
18   the goods or services in a manner that is capable of being
 1   retained by the consumer. If the automatic renewal offer or
 2   continuous service offer includes a free gift or trial, the
 3   acknowledgment shall include a clear and conspicuous explanation
 4   of the price that will be charged after the trial ends or the
 5   manner in which the pricing will change upon conclusion of the
 6   trial, disclose how to cancel the goods or services, provide the
 7   deadline by which the consumer must act to stop or prevent
 8   charges and allow the consumer to cancel the goods or services
 9   before the consumer pays for the goods or services.
10      (2)   Disclose the automatic renewal offer or continuous
11   service offer to a consumer in a contract or a contract offer in
12   a clear and conspicuous manner.
13      (3)   Allow a consumer who accepts the automatic renewal offer
14   or a continuous service offer online to terminate the acceptance
15   of the goods or services exclusively online. A business entity
16   may allow a consumer who accepted an automatic renewal or
17   continuous service offer to terminate the automatic renewal
18   offer or continuous service offer under this clause by
19   electronic mail formatted and provided by the business entity
20   without additional information, or through a link to a website
21   or other online service the consumer can use to cancel.
22      (4)   In the case of a material change in the terms of the
23   automatic renewal offer or continuous service offer, provide a
24   consumer with a clear and conspicuous notice of the material
25   change and information regarding how to cancel the goods or
26   services in a manner that is capable of being retained by the
27   consumer.
28      (5)   Not intentionally misrepresent the terms of the
29   automatic renewal offer or continuous service offer or any
30   material fact related to the underlying good or service.

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 1      (b)   This section shall not apply to:
 2      (1)   A business entity that is subject to the act of December
 3   21, 1989 (P.L.672, No.87), known as the "Health Club Act."
 4      (2)   A service provided by a business entity or its affiliate
 5   for which the business entity or its affiliate is regulated by
 6   the Federal Communications Commission, Federal Energy Regulatory
 7   Commission or Pennsylvania Public Utility Commission.
 8      (3)   A contract subject to 66 Pa.C.S. Ch. 22 (relating to
 9   natural gas competition) or 28 (relating to restructuring of
10   electric utility industry).
11      (c)   A violation of this section shall constitute unfair
12   methods of competition and unfair or deceptive acts or practices
13   and shall be subject to the enforcement provisions and private
14   rights of action specified in this act.
15      (d)   As used in this section:
16      "Clear and conspicuous" means, in reference to text, type
17   larger than the surrounding text, or in contrasting type, font,
18   or color to the surrounding text of the same size, or set off
19   from the surrounding text of the same size by symbols or other
20   marks, in a manner that clearly calls attention to the language.
21      "Consumer" means an individual who obtains or has obtained
22   goods or services for use primarily for personal, family or
23   household purposes.
24      Section 2.   This act shall take effect in 60 days.




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