15 U.S.C. § 8402: Prohibitions against certain…

Summary

It is illegal for a third-party seller to charge a buyer’s credit card, debit card, bank account, or other account after an online purchase unless the seller first clearly shows what is being sold, makes clear they are not the original merchant (for example by using their own name), and shows the price before getting the buyer’s billing information. The seller must also get the buyer’s clear permission to be charged by collecting the full account number, the buyer’s name, address, and a way to contact them, and by requiring an extra clear action from the buyer (like clicking a confirmation button or checking a box). An original merchant may not pass a customer’s account or billing information to a third-party seller for use in an online sale. This does not change rules in the Electronic Funds Transfer Act. Initial merchant: the person who got the customer’s billing info directly when the customer made an online purchase. Post-transaction third-party seller: a seller who offers goods online, contacts that customer through the original merchant after the customer started a transaction, and is not the original merchant, its affiliate, or its successor.

Title 15, §8402

Commerce and Trade, Source: USLM XML via OLRC

(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.

(c)Application with other law

Nothing in this chapter shall be construed to supersede, modify, or otherwise affect the requirements of the Electronic Funds Transfer Act (15 U.S.C. 1693 et seq.) or any regulation promulgated thereunder.

(d)Definitions

In this section: (1) Initial merchant

(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).

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Electronic Fund Transfer Act, referred to in subsec. (c), is title IX of Pub. L. 90–321, as added by Pub. L. 95–630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3728, which is classified generally to subchapter VI (§ 1693 et seq.) of chapter 41 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 1601 of this title and Tables.

§8402 Prohibitions Against Certain Unfair and Deceptive Internet Sales Practices