CS/HB 1303

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 that violations are unfair or
14	deceptive trade practices; providing penalties and
15	remedies for violations; providing an effective date.
16
17	Be It Enacted by the Legislature of the State of Florida:
18
19	Section 1.  Part XII of chapter 559, Florida Statutes,
20	consisting of section 559.951, is created to read:
21	PART XII
22	MISCELLANEOUS PROVISIONS
23	559.951  Internet sales; prohibited practices.-
24	(1)  As used in this section, the term:
25	(a)  "Initial merchant" means a person who obtains a
26	consumer's billing information directly from the consumer
27	through an Internet transaction initiated by the consumer.
28	(b)  "Posttransaction third-party seller" means a person
29	who:
30	1.  Sells or offers for sale any good or service over the
31	Internet; and
32	2.  Solicits the purchase of such goods or services over
33	the Internet from an initial merchant after the consumer has
34	initiated a transaction with the initial merchant.
35
36	The term does not include the initial merchant, a subsidiary or
37	corporate affiliate of the initial merchant, or a successor of
38	the initial merchant.
39	(2)  A posttransaction third-party seller may not charge or
40	attempt to charge a consumer's credit card, debit card, bank
41	account, or other account for any good or service sold in a
42	transaction conducted over the Internet, unless:
43	(a)  Before obtaining the consumer's billing information,
44	the posttransaction third-party seller clearly and conspicuously
45	discloses to the consumer all material terms of the transaction,
46	including:
47	1.  A description of the goods or services being offered.
48	2.  A statement that the posttransaction third-party seller
49	is not affiliated with the initial merchant. Such statement must
50	include the disclosure of the posttransaction third-party
51	seller's name in a manner that clearly differentiates the
52	posttransaction third-party seller from the initial merchant.
53	3.  The cost of such goods or services.
54	4.  How and when the charges will be processed by the
55	posttransaction third-party seller.
56	(b)  The posttransaction third-party seller receives the
57	express informed consent for the charge from the consumer whose
58	credit card, debit card, bank account, or other account will be
59	charged by:
60	1.  Obtaining from the consumer:
61	a.  The full account number of the account to be charged or
62	other account information necessary to complete the transaction.
63	b.  The consumer's name and address.
64	c.  A means to contact the consumer.
65	2.  Requiring the consumer to perform an additional
66	affirmative action, such as selecting a confirmation button or
67	checking a box, which clearly and conspicuously indicates the
68	consumer's consent to be charged the amount disclosed.
69	3.  Sending to the consumer a written notice confirming the
70	transaction. The notice must clearly and conspicuously disclose
71	the following information by either first class United States
72	Mail or e-mail at least 20 days before charging the consumer:
73	a.  The good or service purchased.
74	b.  The amount that the consumer will be charged.
75	c.  When the consumer's account will be charged.
76	d.  Whether the charges are recurring.
77	e.  A statement that the consumer may cancel at any time by
78	calling a telephone number provided in the notice or by sending
79	a written request to a mailing address or e-mail address
80	provided in the notice.
81	f.  The name of the initial merchant and a statement that
82	the posttransaction third-party seller is a separate entity from
83	the initial merchant.
84	g.  A statement that the consumer is being charged by the
85	posttransaction third-party seller for a transaction that is
86	separate from the consumer's transaction with the initial
87	merchant.
88	h.  A mechanism for a consumer to cancel the good or
89	service, and stop any recurring charges, by phone, e-mail, or
90	United States Mail.
91	i.  If the notice is sent by e-mail, the only words
92	appearing in the subject line shall be "Notice that we are
93	charging your (...type of account...) account."
94	(3)  An initial merchant may not disclose a consumer's
95	credit card number, debit card number, bank account number, or
96	other account number, or disclose other consumer billing
97	information, to a posttransaction third-party seller.
98	(4)  A posttransaction third-party seller may not:
99	(a)  Charge a consumer unless the posttransaction third-
100	party seller provides a mechanism for the consumer to stop
101	recurring charges by telephone, e-mail, or United States mail;
102	or
103	(b)  Change its vendor code, or otherwise change the way
104	the posttransaction third-party seller is identified on the
105	consumer's account, more than once per year, unless the
106	posttransaction third-party seller sends a notice of the change
107	by e-mail or United States mail.
108	(5)  A violation of this section is deemed an unfair or
109	deceptive trade practice within the meaning of part II of
110	chapter 501. A person who violates this section is subject to
111	the penalties and remedies provided therein.
112	Section 2.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.