U.S. Senators John Fetterman (D-PA) and Chris Van Hollen (D-MD) have reintroduced the Consumer Online Payment Transparency and Integrity (Consumer OPT-IN) Act, a measure designed to protect consumers from misleading subscription practices tied to free trials and automatic renewals.

The legislation would shift responsibility to companies to obtain clear, informed consent from customers before converting free trials into paid subscriptions or extending recurring billing contracts. The proposal comes amid growing criticism of so-called “dark patterns”, interface designs or processes that make canceling subscriptions difficult or confusing.

Among the key provisions of the bill:

   •Companies would need to secure explicit consent before charging customers after a free trial ends.

   •Long-term contracts that auto-renew would require a renewal notification and additional consent.

   •For short-term renewals, annual reauthorization would be required.

   •If a company detects six months of inactivity, it would have to obtain consent to continue billing and allow refunds for the unused portion.

   •Consumers would be entitled to refunds if companies violate the terms.

   •The Federal Trade Commission (FTC) would gain authority to regulate these practices, including dark patterns and negative-option contracts.

The reintroduction follows a recent U.S. Court of Appeals decision that vacated the FTC’s 2023 “Click to Cancel” rule, a regulation designed to streamline the cancellation process for subscriptions. That ruling, the bill’s sponsors argue, underscores the need for Congress to act.

The bill is co-sponsored by several Senate Democrats and one Independent, including Senators Blumenthal, Gillibrand, Hirono, Luján, Merkley, Reed, Sanders, Welch, and Wyden. Companion legislation in the House is backed by Representatives Yvette Clarke, Lou Correa, Robin Kelly, and Doris Matsui.

Supporters say the bill is a response to growing complaints from consumers who unknowingly find themselves in recurring payment agreements they did not intend to maintain. Critics of current practices argue that companies make it easy to enroll in subscriptions but difficult to exit them.

The bill is now pending further action in both chambers.