Federal · Title 15 — Commerce and Trade

15 U.S.C. § 8402: Prohibitions against certain unfair and deceptive Internet sales practices

Civil

What this law says, in plain English

This statute prohibits initial merchants from sharing consumer financial account numbers with third-party sellers and requires specific disclosures and affirmative consumer consent for post-transaction sales.

Read the full statutory text
a description of the goods or services being offered; 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 the cost of such goods or services; and the full account number of the account to be charged; and the consumer’s name and address and a means to contact the consumer; and 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. 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. Nothing in this chapter shall be construed to supersede, modify, or otherwise affect the requirements of the Electronic Funds 1 Transfer Act ( 1 So in original. Probably should be “Fund”. 15 U.S.C. 1693 et seq.) or any regulation promulgated thereunder. The term “initial merchant” means a person that has obtained a consumer’s billing information directly from the consumer through an Internet transaction initiated by the consumer. sells, or offers for sale, any good or service on the Internet; 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 the initial merchant; a subsidiary or corporate affiliate of the initial merchant; or a successor of an entity described in clause (i) or (ii).

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.