A proposal earlier this year in Oregon (SB 1001) would have placed new restrictions on automatic renewal agreements, promotional offers, free trial offers, and early termination fees. As states become more interested in online commerce, there will be more of these bills in upcoming legislative sessions.
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 legitimate companies – raising the cost and complexity of free trial periods that build consumer trust – while bad actors continue to ignore the new restrictions just as they ignore existing laws. Enforcement is the answer.
What’s wrong? Privacy legislation that sets information collection defaults will harm the growth of online commerce.
