Bill Text: IA SF2082 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act prohibiting negative option billing practices in subscription contracts and including applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2022-02-02 - Subcommittee recommends amendment and passage. [SF2082 Detail]
Download: Iowa-2021-SF2082-Introduced.html
Senate
File
2082
-
Introduced
SENATE
FILE
2082
BY
DICKEY
A
BILL
FOR
An
Act
prohibiting
negative
option
billing
practices
in
1
subscription
contracts
and
including
applicability
2
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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2082
Section
1.
NEW
SECTION
.
555.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Customer”
means
a
resident
of
this
state
who
has
entered
4
into
a
contract
for
a
subscription
for
goods
and
services.
5
2.
“Negative
option
billing”
means
a
contract
for
a
6
subscription
for
goods
or
services
which
is
automatically
7
renewed
unless
notice
is
provided
by
a
customer
to
a
seller
to
8
terminate
the
contract.
9
3.
“Seller”
means
a
person
who
sells
goods
or
services
to
10
a
customer.
11
Sec.
2.
NEW
SECTION
.
555.2
Negative
option
billing
——
12
prohibition.
13
1.
A
contract
for
a
subscription
of
goods
or
services
shall
14
not
contain
a
negative
option
billing
provision.
Prior
to
15
renewal
of
a
contract
for
a
subscription
for
goods
or
services,
16
the
seller
shall
provide
a
customer
written
notice
complying
17
with
the
requirements
of
subsection
2
that
informs
the
customer
18
that
the
contract
shall
terminate
on
a
date
specified
in
the
19
contract
and
that
renewal
is
conditioned
upon
receipt
from
the
20
customer
of
acceptance
of
the
subscription
contract
renewal.
21
2.
Notice
provided
pursuant
to
subsection
1
shall
be
in
22
writing
in
clear
and
understandable
language
printed
in
an
23
easy-to-read
type,
size,
and
style,
and
shall
be
delivered
by
24
regular
mail,
sent
through
electronic
mail,
or
prominently
25
displayed
on
the
first
page
of
a
monthly
statement,
and
26
supplied
at
least
thirty
days
prior
to
the
termination
date
27
specified
in
the
contract.
The
notice
shall
also
provide
28
clearly
understandable
instructions
for
notification
by
the
29
customer
to
the
seller
of
acceptance
of
contract
renewal.
30
3.
A
seller
shall
not
be
held
liable
for
cancellation
of
31
a
subscription
contract
if
no
notification
of
acceptance
was
32
received
from
a
customer.
A
customer
may
provide
evidence
that
33
the
customer
sent
notification
of
acceptance
of
a
contract
34
renewal.
Upon
satisfactory
evidence
that
such
notification
35
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was
sent
by
the
customer
but
not
received
by
the
seller,
a
1
seller
shall
provide
the
customer
with
a
contract
renewal
under
2
the
original
terms
and
conditions
as
if
notification
had
been
3
received
by
the
seller
in
a
timely
manner.
4
Sec.
3.
NEW
SECTION
.
555.3
Penalties.
5
A
seller
who
violates
a
provision
of
this
chapter
shall
6
return
to
the
customer
the
amount
charged
and
collected
by
the
7
seller
plus
ten
percent
of
the
amount
charged
and
collected
8
from
the
final
unauthorized
billing
period.
The
seller
shall
9
have
thirty
days
from
collecting
the
unauthorized
amount
to
10
return
the
unauthorized
amount
collected
back
to
the
customer.
11
Sec.
4.
APPLICABILITY.
This
Act
applies
to
contracts
for
12
subscription
goods
or
services
entered
into
on
or
after
the
13
effective
date
of
this
Act.
14
EXPLANATION
15
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
16
the
explanation’s
substance
by
the
members
of
the
general
assembly.
17
This
bill
prohibits
the
practice
of
negative
option
billing.
18
The
bill
defines
“negative
option
billing”
to
mean
a
19
contract
for
a
subscription
for
goods
or
services
which
is
20
automatically
renewed
unless
notice
is
provided
by
a
customer
21
to
a
seller
to
terminate
the
contract.
22
The
bill
provides
that
a
seller
must
provide
customers
23
with
a
clear
and
readable
notice,
either
through
writing,
24
mail,
or
on
a
monthly
statement
at
least
30
days
before
the
25
end
of
the
contract,
of
the
process
by
which
a
customer
may
26
renew
a
subscription
to
the
seller.
If
the
seller
does
not
27
receive
a
notification
from
the
customer
that
the
customer
28
wishes
to
renew
the
subscription,
the
seller
must
not
renew
the
29
subscription
service.
30
The
bill
provides
that
if
a
seller
cancels
a
subscription
31
contract
after
notification
of
acceptance
was
sent
but
not
32
received,
the
seller
must
reinstate
the
subscription
contract.
33
The
bill
provides
that
a
violation
of
the
bill’s
provisions
34
shall
result
in
the
seller
refunding
a
customer
the
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