CSHB 339(L&C): "An Act relating to negative option plans for sales, to free trial periods for goods or services, and to acts that are unlawful as unfair trade practices."
00 CS FOR HOUSE BILL NO. 339(L&C) 01 "An Act relating to negative option plans for sales, to free trial periods for goods or 02 services, and to acts that are unlawful as unfair trade practices." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 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 otherwise give 07 a consumer goods or services for a free trial period unless the seller complies with all 08 the conditions of this section. 09 (b) When offering, promoting, advertising, or otherwise giving a consumer 10 goods or services for a free trial period, a seller shall clearly and conspicuously 11 disclose all material terms and conditions of the free trial period, including 12 (1) any obligation by the consumer to purchase a minimum quantity of 13 goods or services after the free trial period ends; 14 (2) a description of all charges that will be made after the free trial
01 period ends and how those charges will be calculated; 02 (3) whether any charges for goods or services will include shipping 03 and handling; 04 (4) any other obligations the consumer assumes by accepting or using 05 the goods or services within the free trial period. 06 (c) When offering or otherwise giving a consumer goods or services for a free 07 trial period, a seller shall obtain express written consent from the consumer to the free 08 trial period. The form for the written consent must be prepared by the seller and must 09 include the consumer's acknowledgment that the consumer has received and 10 understands the disclosures required by (b) of this section. 11 (d) At the end of the free trial period, a seller may not charge a consumer for 12 the goods and services that were the subject of the free trial period unless the seller has 13 complied with (b) and (c) of this section. 14 (e) This section does not apply to a seller who offers, promotes, advertises, or 15 otherwise gives a consumer goods or services for free if the seller does not impose any 16 obligations on a consumer who accepts the free goods or services. 17 (f) In this section, "free trial period" means a period of time that a seller 18 provides to a consumer goods or services to sample or use without charge. 19 Sec. 45.45.930. Negative option plans. (a) Notwithstanding a provision in 20 AS 45.02 to the contrary, a seller may not use a negative option plan to sell goods or 21 services unless the seller complies with all provisions of this section. 22 (b) Before using a negative option plan, a seller must clearly and 23 conspicuously disclose in writing to the prospective buyer before the goods or services 24 are provided 25 (1) the material terms of the plan, including a description of the goods 26 or services being sold; 27 (2) a statement of the price the seller will charge for the goods or 28 services, and the date when the price will be charged if the prospective buyer does not 29 cancel the sale by using the steps identified under (e) of this section; and 30 (3) the specific steps that the buyer must take by telephone, regular 31 mail, or electronic mail to cancel the sale.
01 (c) Before using a negative option plan, a seller shall obtain express written 02 authorization from the buyer to use the negative option plan. 03 (d) At least 15 days before a seller may charge a buyer for goods or services 04 provided under a negative option plan, the seller shall provide the buyer with a notice 05 that contains 06 (1) a clearly written description of the negative option plan, including a 07 description of the goods or services being sold; 08 (2) a statement of the amount that will be charged and the date when 09 the charge will be imposed if the buyer does not cancel the sale; and 10 (3) the specific steps that the buyer is required to take to cancel the 11 charge by telephone, by regular mail, or by electronic mail. 12 (e) A seller who charges a buyer for goods or services under a negative option 13 plan has the burden of proving that the seller provided with the buyer the notice 14 required by (d) of this section and that the buyer expressly agreed to be charged for the 15 goods or services. 16 (f) In this section, 17 (1) "negative option plan" means an arrangement under which a seller 18 provides goods or services to a person and charges the person for the goods or services 19 unless the person notifies the seller that the person does not want to buy the goods or 20 services; 21 (2) "seller" means a person who engages in the business of selling 22 goods or services. 23 * Sec. 2. AS 45.50.471(b) is amended by adding new paragraphs to read: 24 (47) violating AS 45.45.920 (free trial period); 25 (48) violating AS 45.45.930 (negative option plans).