Sorca Clarke (Longford-Westmeath, Sinn Fein) | Oireachtas source

I move amendment No. 138:

In page 94, between lines 9 and 10, to insert the following: “Online Safety for Consumers of Purchased Subscriptions

139Y.(1) For the purposes of this section, the following definitions shall apply:

(a) 'Automatic renewal' means a plan or arrangement in which a paid subscription or purchasing agreement is automatically renewed at the end of a definite term for a subsequent term;

(b) 'Automatic renewal offer terms' means the following clear and conspicuous disclosures:

(i) that the subscription or purchasing agreement will continue until the consumer cancels;

(ii) the description of the cancellation policy that applies to the offer;

(iii) the recurring charges that will be charged to the consumer's credit or debit card or payment account with a third party as part of the automatic renewal plan or arrangement, and that the amount of the charge may change, if that is the case, and the amount to which the charge will change, if known;

(iv) the length of the automatic renewal term or that the service is continuous, unless the length of the term is chosen by the consumer;

(v) the minimum purchase obligation, if any.

(c) 'clear and conspicuous' or 'clearly and conspicuously' means in larger type than the surrounding text, or in contrasting type, font, or colour to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks, in a manner that clearly calls attention to the language. In the case of an audio disclosure, 'clear and conspicuous' and 'clearly and conspicuously' means in a volume and cadence sufficient to be readily audible and understandable;

(d) 'consumer' means any individual who seeks or acquires, by purchase or lease, any goods, services, money, or credit for personal, family, or household purposes;

(e) 'continuous service' means a plan or arrangement in which a subscription or purchasing agreement continues until the consumer cancels the service.

(2) It shall be unlawful for any business that makes an automatic renewal offer or continuous service offer to a consumer in this State to do any of the following:

(a) fail to present the automatic renewal offer terms or continuous service offer terms in a clear and conspicuous manner before the subscription or purchasing agreement is fulfilled and in visual proximity, or in the case of an offer conveyed by voice, in temporal proximity, to the request for consent to the offer. If the offer also includes a free gift or trial, the offer shall include a clear and conspicuous explanation of the price that will be charged after the trial ends or the manner in which the subscription or purchasing agreement pricing will change upon conclusion of the trial;

(b) charge the consumer's credit or debit card, or the consumer's account with a third party, for an automatic renewal or continuous service without first obtaining the consumer's affirmative consent to the agreement containing the automatic renewal offer terms or continuous service offer terms, including the terms of an automatic renewal offer or continuous service offer that is made at a promotional or discounted price for a limited period of time;

(c) fail to provide an acknowledgement that includes the automatic renewal offer terms or continuous service offer terms, cancellation policy, and information regarding how to cancel in a manner that is capable of being retained by the consumer. If the automatic renewal offer or continuous service offer includes a free gift or trial, the business shall also disclose in the acknowledgement how to cancel, and allow the consumer to cancel, the automatic renewal or continuous service before the consumer pays for the goods or services.

(3) A business that makes an automatic renewal offer or continuous service offer shall provide a toll-free telephone number, electronic mail address, a postal address if the seller directly bills the consumer, or it shall provide another cost-effective, timely, and easy-to-use mechanism for cancellation that shall be described in the acknowledgement specified in paragraph (c) of subsection (1).

(4) In addition to the requirements of subsection (2), a consumer who accepts an automatic renewal or continuous service offer online shall be allowed to terminate the automatic renewal or continuous service exclusively online, which may include a termination email formatted and provided by the business that a consumer can send to the business without additional information.

(5) In the case of a material change in the terms of the automatic renewal or continuous service that has been accepted by a consumer in this State, the business shall provide the consumer with a clear and conspicuous notice of the material change and provide information regarding how to cancel in a manner that is capable of being retained by the consumer.

(6) The requirements of this section shall apply only prior to the completion of the initial order for the automatic renewal or continuous service, except as follows:

(a) the requirement in paragraph (c) of subsection (1) may be fulfilled after completion of the initial order;

(b) the requirement in subsection (5) shall be fulfilled prior to implementation of the material change.

(7) This section shall come into operation on 1 January 2023.”.

In online safety, we have to look at international best practice when it comes to protecting consumers, particularly from those hidden charges and increases in them. There is also a very real difficulty around the exit procedures from some subscription services. I cannot be the only person in this room who remembers the premium ringtones from the 1990s and the horror that ensued when trying to cancel those subscriptions. That triggered legislation in other jurisdictions which we benefited from, thankfully. However, it is still an issue. It was actually highlighted on RTÉ's "Claire Byrne Live" show a number of months ago as an issue. Whether it is an online subscription or a subscription to an app, the issues remain the same. On the face of it, these monthly fees and charges can be quite minimal so they almost slip past people's attention when they appear on their bank statements, but they do have an overall and cumulative damaging impact on people's finances. That is why protections are needed.

What we are proposing is to replicate section 17602 of the Business and Professions Code of the State of California. It would ensure people receive an adequate warning of an impending fee increase, and it would also make it easier to cancel a subscription online with the press of a button. The principle is that it should, in fact, be as easy to unsubscribe as it is to subscribe in the first place.