Enrolled HB 339: Relating to opt-out marketing plans for sales, to free trial periods for goods or services, and to acts that are unlawful as unfair trade practices.
00Enrolled HB 339 01 Relating to opt-out marketing plans for sales, to free trial periods for goods or services, and to 02 acts that are unlawful as unfair trade practices. 03 _______________ 04 * Section 1. AS 45.45 is amended by adding new sections to read: 05 Sec. 45.45.920. Free trial period. (a) Notwithstanding a provision in 06 AS 45.02 to the contrary, a seller may not offer, promote, advertise, or provide a 07 consumer with goods or services for a free trial period unless the seller complies with 08 all the conditions of this section. 09 (b) When offering, promoting, or advertising consumer goods or services for a 10 free trial period, a seller shall clearly and conspicuously disclose all material terms and 11 conditions of the free trial period, including 12 (1) all material restrictions, limitations, terms, and conditions of the 13 free trial period, including any obligation by the consumer to purchase a minimum 14 quantity of goods or services after the free trial period ends;
01 (2) a description of all charges that will be imposed after the free trial 02 period ends, including whether billing will include charges for shipping and handling 03 and, if the offer, promotion, or advertising is made by telephone, the amount of the 04 shipping and handling charges; 05 (3) a description of the consumer's right to cancel; and 06 (4) any other obligations the consumer assumes by accepting or using 07 the goods or services during the free trial period. 08 (c) Before providing goods or services to a consumer for a free trial period, a 09 seller shall obtain express verifiable consent from the consumer to the free trial period. 10 (d) A consumer who receives goods or services for a free trial period may 11 (1) at any time during the free trial period, return the goods or cancel 12 the services without further obligation to the seller; 13 (2) within 30 days after the free trial period ends, return the goods or 14 cancel the services for a full refund of the charges, if any, or a partial refund for the 15 unused portion of the goods or services. 16 (e) This section does not apply to a seller who provides goods or services to a 17 consumer for free if the consumer does not assume any obligation by accepting the 18 free goods or services. 19 (f) This section does not apply to 20 (1) a telephonic seller who is registered under AS 45.63 and who 21 complies with AS 45.63; or 22 (2) a prenotification negative option plan that is regulated by 16 C.F.R. 23 425 and that complies with 16 C.F.R. 425. 24 (g) In this section, "seller" means a person who engages in the business of 25 selling, contracting for the sale of, arranging for the sale of, or arranging for a free trial 26 period for goods or services. 27 Sec. 45.45.930. Opt-out marketing plans. (a) Notwithstanding a provision 28 in AS 45.02 to the contrary, a seller may not use an opt-out marketing plan to sell 29 goods or services unless the seller complies with all of the provisions of this section. 30 (b) Before using an opt-out marketing plan, a seller shall obtain express 31 verifiable consent from the buyer that confirms that the buyer agrees to the use of the
01 plan. The seller shall provide the following information before obtaining the consent: 02 (1) a description of the material terms and conditions of the plan, 03 including a description of the goods or services that will be offered; 04 (2) that the buyer's account will be charged unless the buyer takes an 05 affirmative action to avoid the charge; 06 (3) the date the charge will be submitted for payment; and 07 (4) the specific steps the buyer must take to avoid the charge. 08 (c) A seller who charges a buyer for goods or services under an opt-out 09 marketing plan has the burden of proving that the buyer provided the express 10 verifiable consent required by (b) of this section and was given the disclosures 11 required by (b) of this section. 12 (d) This section does not apply to a telephonic seller who is registered under 13 AS 45.63 and who complies with AS 45.63. 14 (e) In this section, 15 (1) "opt-out marketing plan" 16 (A) means an arrangement under which a seller provides, 17 without the buyer's express verifiable consent, a notice to a buyer that 18 identifies goods or services that the seller intends to provide to the buyer and to 19 charge the buyer for, unless, by a specific date or within a specific time frame, 20 the buyer notifies the seller not to provide the goods or services; 21 (B) does not include a prenotification negative option plan that 22 is regulated by and complies with 16 C.F.R. 425; 23 (2) "seller" includes a person who engages in the business of selling, 24 contracting for the sale of, or arranging for the sale of goods or services. 25 * Sec. 2. AS 45.50.471(b) is amended by adding new paragraphs to read: 26 (47) violating AS 45.45.920 (free trial period); 27 (48) violating AS 45.45.930 (opt-out marketing plans).