CS/CS/HB 1303

1	A bill to be entitled
2	An act relating to consumer protection; creating part XII
3	of chapter 559, F.S.; prohibiting certain third-party
4	sellers from engaging in certain transactions over the
5	Internet with consumers engaged in transactions with
6	certain merchants except under certain circumstances;
7	requiring certain disclosures to consumers; requiring a
8	consumer's express informed consent for charges;
9	authorizing consumers to cancel goods and services and
10	avoid charges; providing that violations are unfair or
11	deceptive trade practices; providing penalties and
12	remedies for violations; providing an effective date.
13
14	Be It Enacted by the Legislature of the State of Florida:
15
16	Section 1.  Part XII of chapter 559, Florida Statutes,
17	consisting of section 559.951, is created to read:
18	PART XII
19	MISCELLANEOUS PROVISIONS
20	559.951  Internet sales; prohibited practices.-
21	(1)  As used in this section, the term:
22	(a)  "Initial merchant" means a person who obtains a
23	consumer's billing information directly from the consumer
24	through an Internet transaction initiated by the consumer.
25	(b)  "Posttransaction third-party seller" means a person
26	who:
27	1.  Sells or offers for sale any good or service over the
28	Internet; and
29	2.  Solicits the purchase of such good or service over the
30	Internet through an initial merchant after the consumer has
31	initiated a transaction with the initial merchant.
32
33	The term does not include the initial merchant, a subsidiary or
34	corporate affiliate of the initial merchant, or a successor of
35	the initial merchant.
36	(2)  A posttransaction third-party seller may not charge or
37	attempt to charge a consumer's credit card, debit card, bank
38	account, or other account for any good or service sold in a
39	transaction conducted over the Internet, unless:
40	(a)  Before obtaining the consumer's billing information,
41	the posttransaction third-party seller clearly and conspicuously
42	discloses to the consumer all material terms of the transaction,
43	including:
44	1.  A description of the goods or services being offered.
45	2.  A statement that the posttransaction third-party seller
46	is not affiliated with the initial merchant. Such statement must
47	include the disclosure of the posttransaction third-party
48	seller's name in a manner that clearly differentiates the
49	posttransaction third-party seller from the initial merchant.
50	3.  The cost of such goods or services.
51	4.  How and when the charges will be processed by the
52	posttransaction third-party seller.
53	(b)  The posttransaction third-party seller receives the
54	express informed consent for the charge from the consumer whose
55	credit card, debit card, bank account, or other account will be
56	charged by:
57	1.  Obtaining from the consumer:
58	a.  The full account number of the account to be charged or
59	other account information necessary to complete the transaction.
60	b.  The consumer's name and address.
61	c.  A means to contact the consumer.
62	2.  Requiring the consumer to perform an additional
63	affirmative action, such as selecting a confirmation button or
64	checking a box, which clearly and conspicuously indicates the
65	consumer's consent to be charged the amount disclosed.
66	(c)  Before processing the consumer's credit card or
67	otherwise charging the consumer or soon thereafter, the
68	posttransaction third-party seller sends written notice
69	confirming the transaction to the consumer by first class United
70	States mail or e-mail. Such notice must clearly and
71	conspicuously disclose the following:
72	1.  The good or service purchased.
73	2.  The amount that the consumer will be charged.
74	3.  The timing and frequency of charges.
75	4.  A short and plain statement disclosing the
76	posttransaction third-party seller's cancellation and refund
77	policy.
78	5.  A telephone number, mailing address, Internet website
79	address, and e-mail address where the posttransaction third-
80	party seller may be contacted.
81	6.  The name of the initial merchant or fictitious name
82	under which the initial merchant is doing business, if known.
83	7.  The name of the posttransaction third-party seller or
84	fictitious name under which the posttransaction third-party
85	seller is doing business.
86	8.  A statement that the posttransaction third-party seller
87	is an unaffiliated and separate entity from the initial
88	merchant.
89	9.  A statement that the consumer is being charged by the
90	posttransaction third-party seller for a transaction that is
91	separate from the consumer's transaction with the initial
92	merchant.
93
94	If the posttransaction third-party seller sends the notice
95	required under this paragraph by e-mail, the only words
96	appearing in the e-mail's subject line shall be "Notice that
97	(...name or fictitious name of the posttransaction third-party
98	seller...) is charging your (...type of account...) account."
99	(3)  An initial merchant may not disclose a consumer's
100	credit card number, debit card number, bank account number, or
101	other account number, or disclose other consumer billing
102	information, to a posttransaction third-party seller.
103	(4)  A posttransaction third-party seller may not:
104	(a)  Charge a consumer without providing a simple mechanism
105	for the consumer to cancel the good or service and stop charges
106	within a reasonable time after delivery of the written notice
107	confirming the transaction; or
108	(b)  Change its vendor code, or otherwise materially change
109	the way the posttransaction third-party seller is identified on
110	the consumer's account, more than once per year, unless the
111	posttransaction third-party seller provides the consumer with
112	written notice of the change.
113	(5)  A violation of this section is deemed an unfair or
114	deceptive trade practice within the meaning of part II of
115	chapter 501. A person who violates this section is subject to
116	the penalties and remedies provided therein.
117	Section 2.  This act shall take effect October 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.