15 U.S.C. § 8402 — Prohibitions against certain unfair and deceptive Internet sales practices
submitted 16 years ago by Pub. L. 111-345 to r/title-15-COMMERCE-AND-TRADE · 466 words · no verdicts yet
This section sets rules for a post-transaction third-party seller that wants to charge a consumer for goods or services sold online. It requires clear disclosures and express informed consent, bars the initial merchant from passing billing information to that seller, preserves Electronic Funds Transfer Act requirements, and defines the two types of sellers covered.
(a) Requirements for certain Internet-based sales. A post-transaction third-party seller may not charge or try to charge a consumer’s credit card, debit card, bank account, or other financial account for an online good or service unless both of these conditions are met. (1) Before getting the consumer’s billing information, the seller must clearly and noticeably disclose all important terms of the transaction, including (A) what goods or services are being offered; (B) that the post-transaction third-party seller is not connected with the initial merchant. The seller may, for example, disclose its name in a way that clearly distinguishes it from the initial merchant; and (C) the cost of the goods or services. (2) The seller must receive the express, informed consent of the consumer whose account will be charged. To do that, the seller must (A) get from the consumer (i) the full account number of the account to be charged and (ii) the consumer’s name and address and a way to contact the consumer; and (B) require the consumer to take another affirmative action, such as clicking a confirmation button or checking a box that shows the consumer agrees to be charged the disclosed amount.
(b) Prohibition on data-pass used to facilitate certain deceptive Internet sales transactions. An initial merchant may not disclose a credit-card, debit-card, bank-account, or other financial-account number to a post-transaction third-party seller for use in that seller’s online sale of goods or services. The initial merchant also may not disclose other billing information that is used to charge one of its customers to that seller for that use.
(c) Application with other law. Nothing in this chapter may be read to replace, change, or otherwise affect the requirements of the Electronic Funds Transfer Act (15 U.S.C. 1693 and following sections) or any regulation issued under that Act.
(d) Definitions. In this section:
(1) Initial merchant. “Initial merchant” means a person that got a consumer’s billing information directly from the consumer through an Internet transaction that the consumer started. This section does not otherwise define the term “person.”
(2) Post-transaction third-party seller. “Post-transaction third-party seller” means a person that (A) sells or offers to sell a good or service on the Internet; (B) asks the consumer to buy that good or service on the Internet through an initial merchant after the consumer has started a transaction with the initial merchant; and (C) is not (i) the initial merchant, (ii) a subsidiary or corporate affiliate of the initial merchant, or (iii) a successor to an entity described in clause (i) or (ii). This section does not otherwise define the term “person.”
It shall be unlawful for any post-transaction third party seller to charge or attempt to charge any consumer’s credit card, debit card, bank account, or other financial account for any good or service sold in a transaction effected on the Internet, unless—
before obtaining the consumer’s billing information, the post-transaction third party seller has clearly and conspicuously disclosed to the consumer all material terms of the transaction, including—
a description of the goods or services being offered;
the fact that the post-transaction third party seller is not affiliated with the initial merchant, which may include disclosure of the name of the post-transaction third party in a manner that clearly differentiates the post-transaction third party seller from the initial merchant; and
the cost of such goods or services; and
the post-transaction third party seller has received the express informed consent for the charge from the consumer whose credit card, debit card, bank account, or other financial account will be charged by—
obtaining from the consumer—
the full account number of the account to be charged; and
the consumer’s name and address and a means to contact the consumer; and
requiring the consumer to perform an additional affirmative action, such as clicking on a confirmation button or checking a box that indicates the consumer’s consent to be charged the amount disclosed.
It shall be unlawful for an initial merchant to disclose a credit card, debit card, bank account, or other financial account number, or to disclose other billing information that is used to charge a customer of the initial merchant, to any post-transaction third party seller for use in an Internet-based sale of any goods or services from that post-transaction third party seller.
Nothing in this chapter shall be construed to supersede, modify, or otherwise affect the requirements of the Electronic Funds 1 Transfer Act (15 U.S.C. 1693 et seq.) or any regulation promulgated thereunder.
In this section:
The term “initial merchant” means a person that has obtained a consumer’s billing information directly from the consumer through an Internet transaction initiated by the consumer.
The term “post-transaction third party seller” means a person that—
sells, or offers for sale, any good or service on the Internet;
solicits the purchase of such goods or services on the Internet through an initial merchant after the consumer has initiated a transaction with the initial merchant; and
is not—
the initial merchant;
a subsidiary or corporate affiliate of the initial merchant; or
a successor of an entity described in clause (i) or (ii).
Source credit: (Pub. L. 111–345, § 3, Dec. 29, 2010, 124 Stat. 3619.)
- 2010Enacted · Pub. L. 111-345 · 124 Stat. 3619
A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-345 on 2010-12-29.
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