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H 389

An Act to prohibit negative option sales and disclosure of financial and personal information without a consumer’s express agreement

194th Legislature (2025-2026) Introduced by Steven Howitt

H 389 - An Act to prohibit negative option sales and disclosure of financial and personal information without a consumer's express agreement OverviewBill Number: H 389 Title: An A

Hearing rescheduled to 10/01/2025 from 10:00 AM-01:00 PM in B-2 and Virtual Hearing location changed
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Bill Summary · H 389

H 389 - An Act to prohibit negative option sales and disclosure of financial and personal information without a consumer's express agreement

Overview

Bill Number: H 389
Title: An Act to prohibit negative option sales and disclosure of financial and personal information without a consumer's express agreement
Status: Hearing rescheduled to 10/01/2025 from 10:00 AM-01:00 PM in B-2 and Virtual Hearing location changed
Introduced: March 10, 2025

Purpose and Intent

The primary goal of this bill is to protect consumers from unwanted negative option sales and unauthorized disclosure of their personal and financial information. The legislation aims to empower consumers by requiring explicit consent before businesses can enroll them in subscription services or share their sensitive data.

Key Provisions

  • Prohibits businesses from using "negative option" sales tactics, where consumers are automatically enrolled in a subscription or service unless they actively opt-out
  • Requires businesses to obtain a consumer's express written agreement before disclosing their financial or personal information to third parties
  • Mandates clear and conspicuous disclosure of all material terms and conditions related to any subscription or data-sharing agreement
  • Establishes penalties for violations, including fines and potential criminal charges for egregious offenses

Affected Parties and Impacts

  • Consumers would benefit from increased control over their personal and financial information, as well as protection from unwanted recurring charges
  • Businesses that rely on negative option sales or undisclosed data-sharing practices would need to modify their sales and marketing approaches to comply with the new requirements
  • Regulatory agencies would be tasked with enforcing the law and investigating potential violations

Procedural and Timeline Considerations

The bill is currently scheduled for a hearing on October 1, 2025, from 10:00 AM to 1:00 PM in B-2 and a virtual hearing location. If passed, the legislation would take effect 90 days after the date of enactment. Ongoing monitoring and potential amendments may be necessary to address any implementation challenges or unintended consequences.

Compiled from official sources — confirm details with the bill’s official record.

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