A proposal in Oregon (SB 1001) would place new restrictions on automatic renewal agreements, promotional offers, free trial offers, and early termination fees. A Maine bill (HP 1085) would make some helpful amendments to the current law on charges after a free trial period, but still forces online sites to collect billing information even before the beginning of the trial period.
These bills attempt to target behavior that is already a violation of consumer protection laws at the state and federal level. The new restrictions will impact law-abiding companies – raising the cost and complexity of free trial periods that build consumer trust — while outlaws will continue to ignore the new restrictions just as they ignore existing laws.
Additional enforcement is the right answer.
[1]Emphasis added.
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