Bills › 89th General Assembly
Prohibiting negative option billing practices in subscription contracts and including applicability provisions
Topics:Business & economy
Where it is now
- Done: IntroducedJanuary 20, 2022
- Done: SubcommitteeJanuary 27, 2022
- Stopped: Senate committeeDied when the General Assembly ended
- Next: Passes the Senate
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
This bill prohibits the practice of negative option billing. The bill defines “negative option billing” to mean a contract for a subscription for goods or services which is automatically renewed unless notice is provided by a customer to a seller to terminate the contract. The bill provides that a seller must provide customers with a clear and readable notice, either through writing, mail, or on a monthly statement at least days before the end of the contract, of the process by which a customer may renew a subscription to the seller.
Read the full explanation
If the seller does not receive a notification from the customer that the customer wishes to renew the subscription, the seller must not renew the subscription service. The bill provides that if a seller cancels a subscription contract after notification of acceptance was sent but not received, the seller must reinstate the subscription contract. The bill provides that a violation of the bill’s provisions shall result in the seller refunding a customer the unauthorized charge amount plus a percent penalty within days of the charge. The bill applies to contracts for subscription goods or services entered into on or after the effective date of the bill.
From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text
Senate subcommittee
Named January 27, 2022. On February 2, 2022 it recommended amendment and passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Iowa Code it changes
Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works
Lobbying
1 for · 9 against · 3 undecided · Who →