| 1 | A bill to be entitled |
| 2 | An act relating to consumer protection; creating part XII |
| 3 | of chapter 559, F.S.; prohibiting certain third-party |
| 4 | sellers from engaging in certain transactions over the |
| 5 | Internet with consumers engaged in transactions with |
| 6 | certain merchants except under certain circumstances; |
| 7 | requiring certain disclosures to consumers; requiring a |
| 8 | consumer's express informed consent for charges; |
| 9 | authorizing consumers to cancel goods and services and |
| 10 | avoid charges; prohibiting certain merchants from |
| 11 | disclosing certain consumer information to certain third- |
| 12 | party sellers; providing mechanisms for consumers to stop |
| 13 | recurring charges; providing an effective date. |
| 14 |
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| 15 | Be It Enacted by the Legislature of the State of Florida: |
| 16 |
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| 17 | Section 1. Part XII of chapter 559, Florida Statutes, |
| 18 | consisting of section 559.951, is created to read: |
| 19 | PART XII |
| 20 | MISCELLANEOUS PROVISIONS |
| 21 | 559.951 Internet sales; prohibited practices.- |
| 22 | (1) As used in this section, the term: |
| 23 | (a) "Initial merchant" means a person who obtains a |
| 24 | consumer's billing information directly from the consumer |
| 25 | through an Internet transaction initiated by the consumer. |
| 26 | (b) "Posttransaction third-party seller" means a person |
| 27 | who: |
| 28 | 1. Sells or offers for sale any good or service over the |
| 29 | Internet; and |
| 30 | 2. Solicits the purchase of such goods or services over |
| 31 | the Internet from an initial merchant after the consumer has |
| 32 | initiated a transaction with the initial merchant. |
| 33 |
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| 34 | The term does not include the initial merchant, a subsidiary or |
| 35 | corporate affiliate of the initial merchant, or a successor of |
| 36 | the initial merchant. |
| 37 | (2) A posttransaction third-party seller may not charge or |
| 38 | attempt to charge a consumer's credit card, debit card, bank |
| 39 | account, or other account for any good or service sold in a |
| 40 | transaction conducted over the Internet, unless: |
| 41 | (a) Before obtaining the consumer's billing information, |
| 42 | the posttransaction third-party seller clearly and conspicuously |
| 43 | discloses to the consumer all material terms of the transaction, |
| 44 | including: |
| 45 | 1. A description of the goods or services being offered. |
| 46 | 2. A statement that the posttransaction third-party seller |
| 47 | is not affiliated with the initial merchant. Such statement must |
| 48 | include the disclosure of the posttransaction third-party |
| 49 | seller's name in a manner that clearly differentiates the |
| 50 | posttransaction third-party seller from the initial merchant. |
| 51 | 3. The cost of such goods or services. |
| 52 | 4. How and when the charges will be processed by the |
| 53 | posttransaction third-party seller. |
| 54 | (b) The posttransaction third-party seller receives the |
| 55 | express informed consent for the charge from the consumer whose |
| 56 | credit card, debit card, bank account, or other account will be |
| 57 | charged by: |
| 58 | 1. Obtaining from the consumer: |
| 59 | a. The full account number of the account to be charged or |
| 60 | other account information necessary to complete the transaction. |
| 61 | b. The consumer's name and address. |
| 62 | c. A means to contact the consumer. |
| 63 | 2. Requiring the consumer to perform an additional |
| 64 | affirmative action, such as selecting a confirmation button or |
| 65 | checking a box, which clearly and conspicuously indicates the |
| 66 | consumer's consent to be charged the amount disclosed. |
| 67 | 3. Sending to the consumer a written notice confirming the |
| 68 | transaction. The notice must clearly and conspicuously disclose |
| 69 | the following information by either first class United States |
| 70 | Mail or e-mail at least 20 days before charging the consumer: |
| 71 | a. The good or service purchased. |
| 72 | b. The amount that the consumer will be charged. |
| 73 | c. When the consumer's account will be charged. |
| 74 | d. Whether the charges are recurring. |
| 75 | e. A statement that the consumer may cancel at any time by |
| 76 | calling a telephone number provided in the notice or by sending |
| 77 | a written request to a mailing address or e-mail address |
| 78 | provided in the notice. |
| 79 | f. The name of the initial merchant and a statement that |
| 80 | the posttransaction third-party seller is a separate entity from |
| 81 | the initial merchant. |
| 82 | g. A statement that the consumer is being charged by the |
| 83 | posttransaction third-party seller for a transaction that is |
| 84 | separate from the consumer's transaction with the initial |
| 85 | merchant. |
| 86 | h. A mechanism for a consumer to cancel the good or |
| 87 | service, and stop any recurring charges, by phone, e-mail, or |
| 88 | United States Mail. |
| 89 | i. If the notice is sent by e-mail, the only words |
| 90 | appearing in the subject line shall be "Notice that we are |
| 91 | charging your (...type of account...) account." |
| 92 | (3) An initial merchant may not disclose a consumer's |
| 93 | credit card number, debit card number, bank account number, or |
| 94 | other account number, or disclose other consumer billing |
| 95 | information, to a posttransaction third-party seller. |
| 96 | (4) A posttransaction third-party seller may not charge a |
| 97 | consumer unless it provides a mechanism for the consumer to stop |
| 98 | recurring charges by telephone, e-mail, or United States Mail. |
| 99 | Section 2. This act shall take effect July 1, 2011. |