Section 47 Simplified Subscription Cancellations

          Chapter 93 of the General Laws is hereby amended by adding the following section:-

          Section 115. (a) For the purposes of this section, the following words shall have the following meanings unless the context otherwise requires or specifically prescribes a different meaning:

          "Negative option feature", a provision of a contract under which the consumer's silence or failure to take affirmative action to reject a good or service or to cancel or non-renew an agreement is interpreted by the seller as acceptance or continuing acceptance of the offer including, but not limited to, an automatic renewal, a continuity plan, a free-to-pay conversion or fee-to-pay conversion and a pre-notification negative option plan.

          "Product", a good, whether tangible or intangible, or service available for sale or included as part of a sale for personal, family or household use, including memberships, subscriptions and dwelling units available for rent or lease.

          (b) For any product with a negative option feature, failure to provide a simple mechanism for the consumer to cancel the negative option feature and avoid being charged for the product and immediately stop any recurring charges shall be unlawful. The simple cancellation mechanism shall be at least as easy to access and use as the method the consumer used to initiate the negative option feature.

          (c) For any product with a negative option feature, it shall be unlawful to charge the consumer a price higher than the amount previously disclosed to the consumer unless the contract containing the negative option feature discloses that price increases may occur and, without either: (i) first obtaining the consumer's affirmative consent to such increased price; or (ii) clearly and conspicuously disclosing the price increase in a written notice, and providing any consumer who cancels the negative option feature within 30 days of receiving said written notice a refund on a pro rata basis of any amounts charged at the increased price the remaining term of the service.

          (d) The provisions of this section shall apply to the conduct specified herein unless preempted by federal law.

          (e) The attorney general may promulgate regulations interpreting the provisions of subsections (b) and (c), including disclosure and notice requirements applicable to products with a negative option feature. Such rules and regulations shall not be inconsistent with the rules, regulations and decisions of the Federal Trade Commission and the federal courts interpreting the provisions of 15 U.S.C. 45(a)(1), also known as the Federal Trade Commission Act, as from time to time amended.

          (f) A violation of this section shall constitute an unfair or deceptive act or practice pursuant to chapter 93A.

This section requires that the method for cancelling subscription agreements is as simple as signing-up.