GovTrack’s Bill Summary
We don’t have a summary available yet.
S. stands for Senate bill.
This bill was enacted after being signed by the President on December 29, 2010.
Last updated Dec 17, 2010.
|Referred to Committee|
|Reported by Committee|
|Signed by the President|
A bill to protect consumers from certain aggressive sales tactics on the Internet.
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No summaries available.
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S. 3386--111th Congress: Restore Online Shoppers’ Confidence Act. (2010). In www.GovTrack.us. Retrieved March 10, 2014, from http://www.govtrack.us/congress/bills/111/s3386
“S. 3386--111th Congress: Restore Online Shoppers’ Confidence Act.” www.GovTrack.us. 2010. March 10, 2014 <http://www.govtrack.us/congress/bills/111/s3386>
|title=S. 3386 (111th)
|accessdate=March 10, 2014
|author=111th Congress (2010)
|date=May 19, 2010
|quote=Restore Online Shoppers’ Confidence Act
We don’t have a summary available yet.
The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.
The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.
This summary can be found at http://www.gop.gov/bill/111/2/s3386.
Consumer complaints have surfaced surrounding the use of a "data-pass process" that allows e-commerce and online sales companies to forward personal financial information, including credit card numbers, to post-transaction third-party sellers. A post-transaction sale is when third-party sellers insert sales offers into the transaction process of a primary seller.
Certain companies have allowed third-party sellers to exploit their transaction process in exchange for a payment of $10 to $30 for each customer that accepted a third-party sales offer. Third-party offers are usually ongoing subscriptions that require consumers to affirmatively opt out or provide what is known as a "negative response." These types of agreements interpret a customer's silence or inaction to reject goods or services or to cancel an agreement as acceptance of the offer.
S. 3386 would prohibit, in most cases, any third-party seller from charging or attempting to charge a consumer, after an initial transaction, for any good or service sold over the Internet. The bill defines a third-party seller as a vendor that offers a good or service to a consumer after the consumer has completed a transaction with a different Internet merchant.
Prohibition of "Data Pass" Process: The bill would prohibit the use of the “data-pass process”. Third-party sellers that engage in post-transaction sales would be required to clearly disclose their product and terms of any agreement to the consumer. This bill requires third-party sellers create a process for the consumer to re-enter personal and financial information, before any transaction could be completed.
Prohibition of "Negative Response": The bill prohibits, in most cases, third-party sellers from using a “negative response” or opt-out tactic as defined by the Federal Trade Commission (FTC). Sellers that engage in this practice would be required to provide a form that discloses all the terms of any agreement, obtain expressed consent from the consumer, and provide a simple way for the consumer to cancel ongoing charges or subscription fees.
Enforcement: The bill would treat any violation as an unfair or deceptive act and practice under the Federal Trade Commission Act. These violations of the FTCA could result in a fine of $10,000 per violation, in addition to civil action taken by the FTC. Additionally, the bill would provide a right of action to states to enforce and prosecute any violation of the bill that occurs within their borders. A state attorney general would be permitted to take civil action against a third-party seller should the official deem it necessary.
The Congressional Budget Office (CBO) estimates that implementing the provisions of S. 3386 would not significantly increase spending subject to appropriation. The bill could increase revenues from the collection of civil penalties, but CBO estimates that collections from those penalties would be negligible.
The House Democratic Caucus does not provide summaries of bills.
So, yes, we display the House Republican Conference’s summaries when available even if we do not have a Democratic summary available. That’s because we feel it is better to give you as much information as possible, even if we cannot provide every viewpoint.
We’ll be looking for a source of summaries from the other side in the meanwhile.
The bill contains the following citations to other parts of U.S. law:
The United States Code is the compilation of general and permanent laws enacted by Congress. Laws that are not permanent in nature, law that affect a single individual, family, or small group, regulations, case law, state law, and local law do not appear in the United States Code.