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

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This law protects online shoppers from surprise extra charges. A "post-transaction third party seller" must clearly disclose the deal before charging a card. It must also get the consumer's express consent and cannot get billing details from the original merchant.

(a) Requirements for certain Internet-based sales. A "post-transaction third party seller" cannot charge, or try to charge, a consumer's credit card, debit card, bank account, or other financial account for goods or services sold in an online transaction, unless two things happen first: (1) before getting the consumer's billing information, the seller must clearly and plainly disclose all the important terms of the deal, including (A) a description of the goods or services offered; (B) the fact that the seller is not affiliated with the initial merchant — which can include showing the seller's name in a way that clearly separates it from the initial merchant's name; and (C) the cost of the goods or services; and (2) the seller must get the consumer's express, informed consent to the charge, by (A) getting from the consumer the full account number to be charged, plus the consumer's name, address, and a way to contact them; and (B) requiring the consumer to take an extra affirmative step — like clicking a confirmation button or checking a box — showing they consent to be charged the disclosed amount. (b) Prohibition on data-pass used to facilitate certain deceptive Internet sales transactions. It is unlawful for an "initial merchant" to give a post-transaction third party seller a consumer's credit card, debit card, bank account, or other financial account number, or other billing information used to charge that customer, for the third-party seller to use in its own online sale of goods or services. (c) Application with other law. Nothing in this chapter overrides, changes, or otherwise affects the requirements of the Electronic Fund Transfer Act or any regulation made under it. (d) Definitions. (1) "Initial merchant" means a person who got a consumer's billing information directly from the consumer through an online transaction the consumer started. (2) "Post-transaction third party seller" means a person who (A) sells, or offers to sell, goods or services online; (B) asks the consumer to buy those goods or services online through the initial merchant, after the consumer has already started a transaction with that merchant; and (C) is not (i) the initial merchant; (ii) a subsidiary or corporate affiliate of the initial merchant; or (iii) a successor to a business described in (i) or (ii).

the actual law source: uscode.house.gov ↗public domain

(a) Requirements for certain Internet-based sales

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—

(1)

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)

a description of the goods or services being offered;

(B)

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

(C)

the cost of such goods or services; and

(2)

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—

(A)

obtaining from the consumer—

(i)

the full account number of the account to be charged; and

(ii)

the consumer’s name and address and a means to contact the consumer; and

(B)

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.

(b) Prohibition on data-pass used to facilitate certain deceptive Internet sales transactions

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.

(d) Definitions

In this section:

(1) Initial merchant

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.

(2) Post-transaction third party seller

The term “post-transaction third party seller” means a person that—

(A)

sells, or offers for sale, any good or service on the Internet;

(B)

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

(C)

is not—

(i)

the initial merchant;

(ii)

a subsidiary or corporate affiliate of the initial merchant; or

(iii)

a successor of an entity described in clause (i) or (ii).

Source credit: (Pub. L. 111–345, § 3, Dec. 29, 2010, 124 Stat. 3619.)

history & why it existsrecord from the source credit

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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