Congress moves to kill surprise subscription charges and dark-pattern traps

What it does

This bill requires companies offering automatic renewal services (like free trials that convert to paid subscriptions) to clearly disclose the terms, notify consumers 7 days before charging them, obtain fresh consent annually, and provide easy cancellation methods matching how the consumer signed up. Violations void the contract and trigger refunds. The FTC enforces it as an unfair or deceptive practice.

Why we flagged it

The bill's operative mechanism is a direct restriction on seller conduct (mandatory disclosure, consent, cancellation rights) paired with FTC enforcement and consumer remedies (refunds, contract voidance). It is a straightforward consumer-protection statute addressing auto-renewal abuse.

What the text implies

• The bill exempts 'service contracts' (vehicle/property warranties and maintenance agreements) from its requirements, potentially leaving a significant category of auto-renewal products outside the rule.
• The FTC is granted broad rulemaking authority to define what constitutes 'dark patterns' and to exempt additional contracts 'as appropriate,' creating regulatory discretion that could narrow or expand the rule's scope post-enactment.
• The 1-year implementation delay allows companies time to restructure consent flows and cancellation mechanisms, but also delays consumer protection for 12 months after enactment.
• The bill's requirement for 'express informed consent' annually may create friction for legitimate subscription services, potentially increasing churn or prompting companies to shift to one-time purchase models.
• Refund obligations for violations may incentivize settlement over litigation, reducing class-action leverage for consumers harmed by systematic violations.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Ordinary consumers gain enforceable rights to clear disclosure, advance notice, easy cancellation, and refunds when companies violate the rules. The bill directly addresses a widespread consumer harm (surprise auto-renewal charges and hard-to-cancel subscriptions) with concrete remedies and FTC enforcement.

Named in the bill

Federal Trade Commission (FTC), Subscription service providers, Free-trial platforms, Negative option feature sellers

Where it stands

13 cosponsors: 13 Democrats.

• Jul 14, 2025 — Introduced · Congress.gov: “Introduced in House”
• Jul 14, 2025 — Referred to House Committee on Energy and Commerce · Congress.gov: “Referred to the House Committee on Energy and Commerce”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

2 lobbying clients named this bill on 4 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $6,350,000 in lobbying spend. A filing names 84 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 41% of bills with at least one filing.

Yvette Clarke, the sponsor, reported $626,107 in PAC receipts in the 2026 cycle.

• American Property Casualty Insurance Association — $3,540,000 on 2 filings
• Entertainment Software Association — $2,810,000 on 2 filings

Lobbying Disclosure Act filings through Jul 22, 2026. A filing shows who paid to lobby on a bill it names, not what changed.