CSHB 339(JUD): "An Act 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."
00 CS FOR HOUSE BILL NO. 339(JUD) 01 "An Act relating to opt-out marketing 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 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 charges for shipping and handling; 03 (3) a description of the consumer's right to cancel; and 04 (4) any other obligations the consumer assumes by accepting or using 05 the goods or services during the free trial period. 06 (c) Before providing goods or services to a consumer for a free trial period, a 07 seller shall obtain express verifiable consent from the consumer to the free trial period. 08 (d) The seller has the burden of proving that the seller provided the disclosures 09 required under (b) of this section and that the consumer gave express verifiable 10 consent to the free trial period under (c) of this section. 11 (e) If a consumer agrees to a free trial period under (c) of this section, the 12 seller shall, at least 15 days before charging the consumer's account, send the 13 consumer a written confirmation that clearly and conspicuously states how the 14 consumer can cancel or discontinue receiving the product or service without payment 15 or further obligation. The confirmation form must provide a box or space allowing 16 the consumer to indicate that the service or product is not wanted, and must be 17 accompanied by a return envelope. The return envelope is not required if the form is 18 contained on a card that can be returned without an envelope. The written 19 confirmation may be sent with, or included on, a billing invoice as long as the 20 statement explaining how to cancel receiving the product or service is made in a font 21 size at least as large as the largest font used elsewhere on the invoice. 22 (f) At the end of the free trial period, a seller may not charge a consumer for 23 any goods or services provided during or otherwise related to the free trial period 24 unless the seller has complied with (b), (c), and (e) of this section. 25 (g) This section does not apply to a seller who provides goods or services to a 26 consumer for free if the consumer does not assume any obligation by accepting the 27 free goods or services. 28 (h) This section does not apply to 29 (1) a telephonic seller who is registered under AS 45.63 and who 30 complies with AS 45.63; or 31 (2) a prenotification negative option plan that is regulated by 16 C.F.R.
01 425 and that complies with 16 C.F.R. 425. 02 (i) In this section, "seller" means a person who engages in the business of 03 selling, contracting for the sale, arranging for the sale of, or arranging for a free trial 04 period for goods or services. 05 Sec. 45.45.930. Opt-out marketing plans. (a) Notwithstanding a provision 06 in AS 45.02 to the contrary, a seller may not use an opt-out marketing plan to sell 07 goods or services unless the seller complies with all of the provisions of this section. 08 (b) Before using an opt-out marketing plan, a seller shall obtain express 09 verifiable consent from the buyer that confirms that the buyer agrees to the use of the 10 plan. The seller shall provide the following information before obtaining the consent: 11 (1) a description of the material terms and conditions of the plan, 12 including a description of the goods or services that will be offered; 13 (2) that the buyer's account will be charged unless the buyer takes an 14 affirmative action to avoid the charge; 15 (3) the date the charge will be submitted for payment; and 16 (4) the specific steps the buyer must take to avoid the charge. 17 (c) A seller who charges a buyer for goods or services under an opt-out 18 marketing plan has the burden of proving that the buyer provided the express 19 verifiable consent required by (b) of this section and was given the disclosures 20 required by (b) of this section. 21 (d) This section does not apply to 22 (1) a telephonic seller who is registered under AS 45.63 and who 23 complies with AS 45.63; or 24 (2) a prenotification negative option plan that is regulated by 16 C.F.R. 25 425 and that complies with 16 C.F.R. 425. 26 (e) In this section, 27 (1) "opt-out marketing plan" means an arrangement under which a 28 seller provides an announcement to a buyer that identifies goods or services that the 29 seller intends to provide to the buyer, unless, by a specific date or within a specific 30 time frame, the buyer notifies the seller not to provide the goods or services; 31 (2) "seller" includes a person who engages in the business of selling,
01 contracting for the sale of, or arranging for the sale of goods or services. 02 * Sec. 2. AS 45.50.471(b) is amended by adding new paragraphs to read: 03 (47) violating AS 45.45.920 (free trial period); 04 (48) violating AS 45.45.930 (opt-out marketing plans).