Bill Description: Senate Bill 1298 would impose new regulations on sellers who provide subscription goods or services to consumers via the internet.
Amendment Analysis: The Amendment to Senate Bill 1298 is significant. It changes the rating from (-2) to (-1) and it changes the analysis. The primary shift is that the amended version of the bill limits the applicability of the new regulations to subscriptions placed online.
Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?
Senate Bill 1298 creates Section 48-603G, Idaho Code, to impose new regulations on sellers who provide subscription goods or services to consumers via the internet.
Specifically, the bill says, "A seller may not make an automatic subscription renewal offer to a consumer in this state unless the seller clearly and conspicuously discloses the automatic subscription renewal terms; and the methods that the consumer may use to cancel the subscription."
These sellers are further mandated to "provide methods of automatic subscription renewal cancellation that include free online cancellation of the subscription and cancellation in the same manner that the consumer used to subscribe."
An additional mandate requires that "if a phone number is provided for the purposes of cancellation of the subscription, the number must be toll-free and must be prominently displayed in the disclosure." No exceptions are provided for small or local businesses that don't maintain a toll-free number.
Sellers are not allowed "to make an extended automatic subscription renewal offer to a consumer in this state unless the seller notifies the consumer of the automatic renewal. Notice must be provided to the consumer at least thirty (30) days and no more than sixty (60) days in advance of the date of the delivery or provision of goods or services."
This mandated notice must "clearly and conspicuously: describe the goods or services to be delivered; state the price; inform the consumer that the goods or services will be provided unless the consumer informs the seller that the goods or services are not wanted; and provide the consumer with at least two (2) methods of cancellation, including at least one (1) that shall be provided at no cost to the consumer."
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