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The order at checkout matters

For an Internet transaction with a negative-option feature—charges continuing until the customer takes action—15 U.S.C. §8403 requires material terms before billing information is obtained, express informed consent before charging, and simple mechanisms to stop recurring charges.

A terms page delivered after checkout does not establish the first requirement. Card details alone do not establish the required consent.

Sources: Office of the Law Revision Counsel, U.S. House of Representatives: All 3 numbered conditions

Follow the request into the payment account

In the fictional brand/studio setup, the brand receives a stop-charge request but the local studio’s payment system never receives it. The customer can keep being billed even though both contracts mention cancellation.

Test the actual path from the terms screen through consent and payment, then a request to stop further charges. Decide who receives it, who can act in the payment account and who tells the member what happened. A platform compliance badge does not demonstrate that this particular configuration works.

Freezes, transfers, refunds and complaints also need an accountable business. Pricing classes and staffing is a separate commercial question; collecting membership cash does not establish the cost of delivering the service.

Scope

  • This covers the cited Internet negative-option statute. State health-club, renewal, refund and cancellation rules remain separate; the test does not certify all-law compliance.

Next step

Send a test stop-charge request through the real brand-to-studio process and establish who prevents the next recurring charge.

Sources & review notes

The source records distinguish access dates from substantive review dates. Updating an explanation does not itself recheck the law.

15 U.S.C.8403 — Negative option marketing on the Internet

Office of the Law Revision Counsel, U.S. House of Representatives

Passage, dates and research notes

primary · All 3 numbered conditions

provides simple mechanisms for a consumer to stop recurring charges

Accessed: 2026-11-12T21:22:08.250311+00:00 · Meaning reviewed: 2026-11-12T21:29:10.023446+00:00 · Next review target: 2026-12-12

Read full statutory text on official temporary-format site, current through PublicLaw 119-120 (October 7 2026). Describes this statute only, not universal state cancellation law or current status of separate FTC rules.

Detailed rule records (1)
Review Internet negative-option consent and cancellation Depends on the facts

Disclose material terms before billing information, obtain express informed consent before charging and provide simple mechanisms to stop recurring charges.

When to check: Designing checkout and renewal process. Source review: 2026-11-12T21:29:10.023446+00:00.

15 U.S.C.8403 — Negative option marketing on the Internet
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