An Act amending the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law, further providing for definitions.

PRIOR PRINTER'S NOS. 110, 1875 PRINTER'S NO. 2061
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 129
Session of
2025
INTRODUCED BY BOROWSKI, VENKAT, GIRAL, HOWARD, PROBST, KHAN,
CIRESI, SANCHEZ, HADDOCK, SHUSTERMAN, GUENST, PROKOPIAK,
CERRATO, GREEN, WAXMAN AND RIVERA, JANUARY 16, 2025
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 30, 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," further providing for definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2(4) of 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 subclause and
the section is amended by adding a clause to read:
Section 2. Definitions.--As used in this act.
* * *
(4) "Unfair methods of competition" and "unfair or deceptive
acts or practices" mean any one or more of the following:
* * *
(xx.1) Using a form or other document related to a consumer
transaction that contains an automatic renewal provision or a
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provision creating any other form of negative option plan. For
purposes of this subclause, the following shall apply:
(A) The term "negative option plan" means an agreement in
which the consumer's silence or failure to take affirmative
action to reject a good or service or to cancel the agreement is
interpreted by the negative option 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 or a pre-notification
negative option plan, unless:
(I) The provision regarding the transaction is specified in
a clear and conspicuous manner and includes all of the
following:
(a) An acknowledgment that includes the automatic renewal
offer terms and the specific procedure by which the consumer may
cancel in a manner that is capable of being retained by the
consumer.
(b) A guarantee that the seller will notify the consumer
before the automatic renewal occurs:
(i) Not more than fifteen days before a renewal period of
less than three months.
(ii) Not more than thirty THIRTY-FIVE days before a renewal
period of three months or more.
(iii) Using means of communication
by which the consumer commonly interacts with the business.
(II) If the offer includes a free, discounted or otherwise
different introductory trial, all of the following apply:
(a) The seller discloses in the acknowledgment required
under subunit (I)(a) how to cancel and allow the consumer to
cancel before the consumer pays the full amount for the goods or
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services.
(b) At the initiation of an introductory trial period, the
seller discloses a description of all charges that will be
imposed after the introductory trial period ends, including
whether billing will include charges for shipping and handling
and the amount of the shipping and handling charges.
(III) The mechanisms of cancellation available to the
consumer are identical to the mechanisms by which the consumer
may agree to the provision.
(IV) The seller does not make or submit a charge to the
consumer's credit card, debit card, bank account, account with a
third party or other financial account, unless the seller has
complied with the requirements of this subclause and obtained
the consumer's affirmative consent to the agreement containing
the terms of the automatic renewal. As used in this subunit , the
term "affirmative consent":
(a) Means a clear, affirmative act signifying the consumer's
freely given, specific, informed and unambiguous agreement to
the automatic renewal or continuous service terms.
(b) Includes a written statement, including a statement
written by electronic means, or an unambiguous affirmative
action.
(B) This subclause shall not apply to any of the following:
(I) A business entity that is subject to the act of December
21, 1989 (P.L.672, No.87), known as the "Health Club Act."
(II) A service provided by a business entity or its
affiliate in accordance with a franchise issued by a political
subdivision.
(III) A service provided by a business entity or its
affiliate for which the business entity or its affiliate is
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regulated by the Federal Communications Commission, the Federal
Energy Regulatory Commission or the Pennsylvania Public Utility
Commission.
(IV) A business-to-business or business-to-government
enterprise for products or software.
(V) An entity regulated by the Insurance Department.
(VI) A contract subject to 66 Pa.C.S. Ch. 22 (relating to
natural gas competition) or 28 (relating to restructuring of
electric utility industry).
(VII) Services for the installation, service, inspection,
testing, maintenance or monitoring of a security system. As used
in this subunit, the term "security system" means an assembly of
electronic equipment and devices that provides, as its main
purpose, the protection of life or property and the detection of
threats or violations to the security of the protected premises.
The systems functions include, solely or in combination: burglar
alarm systems, fire alarm and sprinkler systems, electronic
access control systems, video surveillance systems or personal
emergency response systems.
* * *
(14) "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.
* * *
Section 2. This act shall take effect in 60 180 days.
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