AB 314: Dating service contracts: online services.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2017-10-08
Existing law defines and regulates dating service contracts. Existing law requires a dating service contract to be in writing and requires that a copy of the contract be provided to the buyer at the time he or she signs the contract. Existing law further requires that a dating service contract contain a conspicuous statement, placed as specified, regarding the right of the buyer to cancel the agreement. Existing law establishes procedures for cancellation, including providing that cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
This bill would establish specific alternate provisions for a dating service contract with an online dating service, as defined. The alternate provisions would include requirements regarding entering into a contract online, providing an electronic copy of the contract to the buyer, and including a version of the conspicuous statement in the online contract. The bill would also provide for different terms of contract for online dating service contracts and for the cancellation of such a contract by email. The bill would additionally impose prescribed requirements on an online dating service to maintain both a reference or link to information on dating safety awareness and a means to report the behavior of other online dating service users.
Existing law defines and regulates dating service contracts. Existing law requires a dating service contract to be in writing and requires that a copy of the contract be provided to the buyer at the time he or she signs the contract. Existing law further requires that a dating service contract contain a conspicuous statement, placed as specified, regarding the right of the buyer to cancel the agreement. Existing law establishes procedures for cancellation, including providing that cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
This bill would establish specific alternate provisions for a dating service contract with an online dating service, as defined. The alternate provisions would include requirements regarding entering into a contract online, providing an electronic copy of the contract to the buyer, and including a version of the conspicuous statement in the online contract. The bill would also provide for different terms of contract for online dating service contracts and for the cancellation of such a contract by email. The bill would additionally impose prescribed requirements on an online dating service to maintain both a reference or link to information on dating safety awareness and a means to report the behavior of other online dating service users.
Existing law defines and regulates dating service contracts. Existing law requires a dating service contract to be in writing and requires that a copy of the contract be provided to the buyer at the time he or she signs the contract. Existing law further requires that a dating service contract contain a conspicuous statement, placed as specified, regarding the right of the buyer to cancel the agreement. Existing law establishes procedures for cancellation, including providing that cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
This bill would establish specific alternate provisions for a dating service contract with an online dating service, as defined. The alternate provisions would include requirements regarding entering into a contract online, providing an electronic copy of the contract to the buyer, and including a version of the conspicuous statement in the online contract. The bill would also provide for different terms of contract for online dating service contracts and for the cancellation of such a contract by email. The bill would additionally impose prescribed requirements on an online dating service to maintain both a reference or link to information on dating safety awareness and a means to report the behavior of other online dating service users.
Existing law defines and regulates dating service contracts. Existing law requires a dating service contract to be in writing and requires that a copy of the contract be provided to the buyer at the time he or she signs the contract. Existing law further requires that a dating service contract contain a conspicuous statement, placed as specified, regarding the right of the buyer to cancel the agreement. Existing law establishes procedures for cancellation, including providing that cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
This bill would establish specific alternate provisions for a dating service contract with an online dating service, as defined. The alternate provisions would include requirements regarding entering into a contract online, providing an electronic copy of the contract to the buyer, and including a version of the conspicuous statement in the online contract. The bill would also provide for different terms of contract for online dating service contracts and for the cancellation of such a contract by electronic means. email. The bill would additionally impose prescribed requirements on an online dating service to maintain both a reference or link to information on dating safety awareness and a means to report the behavior of other online dating service users.
Existing law defines and regulates dating service contracts. Existing law requires a dating service contract to be in writing and requires that a copy of the contract be provided to the buyer at the time he or she signs the contract. Existing law further requires that a dating service contract contain a conspicuous statement, placed as specified, regarding the right of the buyer to cancel the agreement. Existing law establishes procedures for cancellation, including providing that cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
This bill would establish specific alternate provisions for a dating service contract with an online dating service, as defined. The alternate provisions would include requirements regarding entering into a contract online, providing an electronic copy of the contract to the buyer, and including a version of the conspicuous statement in the online contract. The bill would also provide for different terms of contract for online dating service contracts and for the cancellation of such a contract by email. electronic means. The bill would additionally impose prescribed requirements on an online dating service to maintain both a reference or link to information on dating safety awareness and a means to report the behavior of other online dating service users.
Existing law defines and regulates dating service contracts. Existing law requires a dating service contract to be in writing and requires that a copy of the contract be provided to the buyer at the time he or she signs the contract. Existing law further requires that a dating service contract contain a conspicuous statement, placed as specified, regarding the right of the buyer to cancel the agreement. Existing law establishes procedures for cancellation, including providing that cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
This bill would except from the law regulating dating service contracts, described above, establish specific alternate provisions for a dating service contract with an online dating service contract between a buyer and a person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application, if specified conditions are met. The bill would provide that if an online dating service attempts to comply in good faith with those conditions, technical or procedural noncompliance shall not disqualify the person or organization as an online dating service for the purpose of the exception. service, as defined. The alternate provisions would include requirements regarding entering into a contract online, providing an electronic copy of the contract to the buyer, and including a version of the conspicuous statement in the online contract. The bill would also provide for different terms of contract for online dating service contracts and for the cancellation of such a contract by email. The bill would additionally impose prescribed requirements on an online dating service to maintain both a reference or link to information on dating safety awareness and a means to report the behavior of other online dating service users.
Existing law defines and regulates dating service contracts. Existing law requires a dating service contract to be in writing and requires that a copy of the contract be provided to the buyer at the time he or she signs the contract. Existing law further requires that a dating service contract contain a conspicuous statement, placed as specified, regarding the right of the buyer to cancel the agreement.
This bill would except from the law regulating dating service contracts, described above, an Internet online dating service contract between a buyer and a person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site, or by means of site or a mobile application, if specified conditions are met relating to disclosure of the contract terms and the manner of cancellation. met. The bill would provide that if an online dating service attempts to comply in good faith with those conditions, technical or procedural noncompliance shall not disqualify the person or organization as an online dating service for the purpose of the exception.
Existing law defines and regulates dating service contracts. Existing law requires a dating service contract to be in writing and requires that a copy of the contract be provided to the buyer at the time he or she signs the contract. Existing law further requires that a dating service contract contain a conspicuous statement, placed as specified, regarding the right of the buyer to cancel the agreement.
This bill would except from the law regulating dating service contracts, described above, an Internet dating service contract between a buyer and a person or organization engaged in the business of offering dating, matrimonial, or social referral services online, by means of an Internet Web site, or by means of a mobile application, if specified conditions are met relating to disclosure of the contract terms and the manner of cancellation.
(a)As used in this chapter, a dating service contract is any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
(1)An exchange of names, telephone numbers, addresses, and statistics.
(2)A photograph or video selection process.
(3)Personal introductions provided by the organization at its place of business.
(4)A social environment provided by the organization intended primarily as an alternative to other singles bars or club-type environments.
(b)As used in this chapter, an online dating service means any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.
SEC. 2.Section 1694.1 of the Civil Code is amended to read:1694.1.(a)In addition to any other right to revoke an offer, the buyer has the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services.
(b)(1)Cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
(2)In the case of a dating service contract with an online dating service, cancellation occurs when the buyer gives written notice of cancellation by email to an email address provided by the seller. Additional electronic means of cancellation may be provided by the agreement or offer.
(c)Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid.
(d)Notice of cancellation given by the buyer need not take the particular form as provided in the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the dating service contract.
(e)All moneys paid pursuant to any contract for dating services shall be refunded within 10 days of receipt of the notice of cancellation.
(f)The buyer may notify the dating service of his or her intent to cancel the contract within the three-day period specified in this section and stop the processing of a credit card voucher or check by telephone notification to the dating service. However, this does not negate the obligation of the buyer to cancel the contract by mail, email or other electronic means, telegram, or delivery as required pursuant to this section.
SEC. 3.Section 1694.2 of the Civil Code is amended to read:1694.2.(a)A dating service contract shall be in writing, which, in the case of an online dating service contract, may be an electronic writing made available for viewing online. A copy of the contract shall be provided to the buyer at the time he or she signs the contract, except that an online dating service shall not be required to provide a copy of the contract where (1) the contract is available through a direct link that is provided in a clear and conspicuous manner on the Internet Web site page where the buyer provides consent to the agreement and, (2) upon request by the buyer, the online dating service provides a PDF format or retainable digital copy of the contract.
(b)(1)Every dating service contract shall contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
You, the buyer, may cancel this agreement, without any penalty or obligation, at any time prior to midnight of the original contract sellers third business day following the date of this contract, excluding Sundays and holidays. To cancel this agreement, mail or deliver a signed and dated notice, or send a telegram which states that you, the buyer, are canceling this agreement, or words of similar effect. This notice shall be sent to:
(Name of the business that sold you the contract) |
(Address of the business that sold you the contract). |
(2)Paragraph (1) shall not otherwise apply to an online dating service if the online dating service contract includes the statement in paragraph (1) in a clear and conspicuous manner in a stand-alone first paragraph of the contract.
(c)(1)The dating service contract shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the name and address of the dating service operator to which the notice of cancellation is to be mailed, and the date the buyer signed the contract.
(2)In the case of an online dating service contract, if the name of the dating service operator and the email address that can be used for cancellation appears in the first paragraph of the contract, in a type size no smaller than that generally used in the body of the document, the other requirements of paragraph (1) shall not apply.
(d)(1)No dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term of any such contract be measured by the life of the buyer. However, the services to be rendered to the buyer under the contract may extend over a period beginning within six months and ending within three years of the date the contract is entered into.
(2)In the case of an online dating service contract, if the initial term is one year or less, and subsequent terms are one year or less, paragraph (1) shall not apply.
(e)If a dating service contract is not in compliance with this chapter, the buyer may, at any time, cancel the contract.
SEC. 4.Section 1694.3 of the Civil Code is amended to read:1694.3.(a)Every dating service contract shall contain language providing that:
(1)If by reason of death or disability the buyer is unable to receive all services for which the buyer has contracted, the buyer and the buyers estate may elect to be relieved of the obligation to make payments for services other than those received before death or the onset of disability, except as provided in paragraph (4).
(2)If the buyer has prepaid any amount for services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer or his or her representative.
(3)Disability means a condition which precludes the buyer from physically using the services specified in the contract during the term of disability and the condition is verified in writing by a physician designated and remunerated by the buyer. The written verification of the physician shall be presented to the seller.
(4)If the physician determines that the duration of the disability will be less than six months, the seller may extend the term of the contract for a period of six months at no additional charge to the buyer in lieu of cancellation.
(b)(1)If the buyer relocates his or her primary residence further than 50 miles from the dating service office and is unable to transfer the contract to a comparable facility, the buyer may elect to be relieved of the obligation to make payment for services other than those received prior to that relocation, and if the buyer has prepaid any amount for dating services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer. A buyer who elects to be relieved of further obligation pursuant to this subdivision may be charged a predetermined fee not to exceed one hundred dollars ($100) or, if more than half the life of the contract has expired, a predetermined fee not to exceed fifty dollars ($50).
(2)Paragraph (1) shall not apply to online dating services that are generally available to users on a regional, national, or global basis.
(c)In addition to any other requirements, online dating services shall also maintain both of the following features:
(1)A reference or link to dating safety awareness information that includes, at a minimum, a list or descriptions of safety measures reasonably aimed at increasing awareness of safer dating practices.
(2)A means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
(a)As used in this chapter, a dating service contract is any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
(1)An exchange of names, telephone numbers, addresses, and statistics.
(2)A photograph or video selection process.
(3)Personal introductions provided by the organization at its place of business.
(4)A social environment provided by the organization intended primarily as an alternative to other singles bars or club-type environments.
(b)As used in this chapter, an online dating service means any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.
SEC. 2.Section 1694.1 of the Civil Code is amended to read:1694.1.(a)In addition to any other right to revoke an offer, the buyer has the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services.
(b)(1)Cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
(2)In the case of a dating service contract with an online dating service, cancellation occurs when the buyer gives written notice of cancellation by email to an email address provided by the seller. Additional electronic means of cancellation may be provided by the agreement or offer.
(c)Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid.
(d)Notice of cancellation given by the buyer need not take the particular form as provided in the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the dating service contract.
(e)All moneys paid pursuant to any contract for dating services shall be refunded within 10 days of receipt of the notice of cancellation.
(f)The buyer may notify the dating service of his or her intent to cancel the contract within the three-day period specified in this section and stop the processing of a credit card voucher or check by telephone notification to the dating service. However, this does not negate the obligation of the buyer to cancel the contract by mail, email or other electronic means, telegram, or delivery as required pursuant to this section.
SEC. 3.Section 1694.2 of the Civil Code is amended to read:1694.2.(a)A dating service contract shall be in writing, which, in the case of an online dating service contract, may be an electronic writing made available for viewing online. A copy of the contract shall be provided to the buyer at the time he or she signs the contract, except that an online dating service shall not be required to provide a copy of the contract where (1) the contract is available through a direct link that is provided in a clear and conspicuous manner on the Internet Web site page where the buyer provides consent to the agreement and, (2) upon request by the buyer, the online dating service provides a PDF format or retainable digital copy of the contract.
(b)(1)Every dating service contract shall contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
You, the buyer, may cancel this agreement, without any penalty or obligation, at any time prior to midnight of the original contract sellers third business day following the date of this contract, excluding Sundays and holidays. To cancel this agreement, mail or deliver a signed and dated notice, or send a telegram which states that you, the buyer, are canceling this agreement, or words of similar effect. This notice shall be sent to:
(Name of the business that sold you the contract) |
(Address of the business that sold you the contract). |
(2)Paragraph (1) shall not otherwise apply to an online dating service if the online dating service contract includes the statement in paragraph (1) in a clear and conspicuous manner in a stand-alone first paragraph of the contract.
(c)(1)The dating service contract shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the name and address of the dating service operator to which the notice of cancellation is to be mailed, and the date the buyer signed the contract.
(2)In the case of an online dating service contract, if the name of the dating service operator and the email address that can be used for cancellation appears in the first paragraph of the contract, in a type size no smaller than that generally used in the body of the document, the other requirements of paragraph (1) shall not apply.
(d)(1)No dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term of any such contract be measured by the life of the buyer. However, the services to be rendered to the buyer under the contract may extend over a period beginning within six months and ending within three years of the date the contract is entered into.
(2)In the case of an online dating service contract, if the initial term is one year or less, and subsequent terms are one year or less, paragraph (1) shall not apply.
(e)If a dating service contract is not in compliance with this chapter, the buyer may, at any time, cancel the contract.
SEC. 4.Section 1694.3 of the Civil Code is amended to read:1694.3.(a)Every dating service contract shall contain language providing that:
(1)If by reason of death or disability the buyer is unable to receive all services for which the buyer has contracted, the buyer and the buyers estate may elect to be relieved of the obligation to make payments for services other than those received before death or the onset of disability, except as provided in paragraph (4).
(2)If the buyer has prepaid any amount for services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer or his or her representative.
(3)Disability means a condition which precludes the buyer from physically using the services specified in the contract during the term of disability and the condition is verified in writing by a physician designated and remunerated by the buyer. The written verification of the physician shall be presented to the seller.
(4)If the physician determines that the duration of the disability will be less than six months, the seller may extend the term of the contract for a period of six months at no additional charge to the buyer in lieu of cancellation.
(b)(1)If the buyer relocates his or her primary residence further than 50 miles from the dating service office and is unable to transfer the contract to a comparable facility, the buyer may elect to be relieved of the obligation to make payment for services other than those received prior to that relocation, and if the buyer has prepaid any amount for dating services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer. A buyer who elects to be relieved of further obligation pursuant to this subdivision may be charged a predetermined fee not to exceed one hundred dollars ($100) or, if more than half the life of the contract has expired, a predetermined fee not to exceed fifty dollars ($50).
(2)Paragraph (1) shall not apply to online dating services that are generally available to users on a regional, national, or global basis.
(c)In addition to any other requirements, online dating services shall also maintain both of the following features:
(1)A reference or link to dating safety awareness information that includes, at a minimum, a list or descriptions of safety measures reasonably aimed at increasing awareness of safer dating practices.
(2)A means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
(a)As used in this chapter, a dating service contract is any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
(1)An exchange of names, telephone numbers, addresses, and statistics.
(2)A photograph or video selection process.
(3)Personal introductions provided by the organization at its place of business.
(4)A social environment provided by the organization intended primarily as an alternative to other singles bars or club-type environments.
(b)As used in this chapter, an online dating service means any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.
SEC. 2.Section 1694.1 of the Civil Code is amended to read:1694.1.(a)In addition to any other right to revoke an offer, the buyer has the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services.
(b)(1)Cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
(2)In the case of a dating service contract with an online dating service, cancellation occurs when the buyer gives written notice of cancellation by email to an email address provided by the seller. Additional electronic means of cancellation may be provided by the agreement or offer.
(c)Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid.
(d)Notice of cancellation given by the buyer need not take the particular form as provided in the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the dating service contract.
(e)All moneys paid pursuant to any contract for dating services shall be refunded within 10 days of receipt of the notice of cancellation.
(f)The buyer may notify the dating service of his or her intent to cancel the contract within the three-day period specified in this section and stop the processing of a credit card voucher or check by telephone notification to the dating service. However, this does not negate the obligation of the buyer to cancel the contract by mail, email or other electronic means, telegram, or delivery as required pursuant to this section.
SEC. 3.Section 1694.2 of the Civil Code is amended to read:1694.2.(a)A dating service contract shall be in writing, which, in the case of an online dating service contract, may be an electronic writing made available for viewing online. A copy of the contract shall be provided to the buyer at the time he or she signs the contract, except that an online dating service shall not be required to provide a copy of the contract where (1) the contract is available through a direct link that is provided in a clear and conspicuous manner on the Internet Web site page where the buyer provides consent to the agreement and, (2) upon request by the buyer, the online dating service provides a PDF format or retainable digital copy of the contract.
(b)(1)Every dating service contract shall contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
You, the buyer, may cancel this agreement, without any penalty or obligation, at any time prior to midnight of the original contract sellers third business day following the date of this contract, excluding Sundays and holidays. To cancel this agreement, mail or deliver a signed and dated notice, or send a telegram which states that you, the buyer, are canceling this agreement, or words of similar effect. This notice shall be sent to:
(Name of the business that sold you the contract) |
(Address of the business that sold you the contract). |
(2)Paragraph (1) shall not otherwise apply to an online dating service if the online dating service contract includes the statement in paragraph (1) in a clear and conspicuous manner in a stand-alone first paragraph of the contract.
(c)(1)The dating service contract shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the name and address of the dating service operator to which the notice of cancellation is to be mailed, and the date the buyer signed the contract.
(2)In the case of an online dating service contract, if the name of the dating service operator and the email address that can be used for cancellation appears in the first paragraph of the contract, in a type size no smaller than that generally used in the body of the document, the other requirements of paragraph (1) shall not apply.
(d)(1)No dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term of any such contract be measured by the life of the buyer. However, the services to be rendered to the buyer under the contract may extend over a period beginning within six months and ending within three years of the date the contract is entered into.
(2)In the case of an online dating service contract, if the initial term is two years one year or less, and subsequent terms are one month year or less, paragraph (1) shall not apply.
(e)If a dating service contract is not in compliance with this chapter, the buyer may, at any time, cancel the contract.
SEC. 4.Section 1694.3 of the Civil Code is amended to read:1694.3.(a)Every dating service contract shall contain language providing that:
(1)If by reason of death or disability the buyer is unable to receive all services for which the buyer has contracted, the buyer and the buyers estate may elect to be relieved of the obligation to make payments for services other than those received before death or the onset of disability, except as provided in paragraph (4).
(2)If the buyer has prepaid any amount for services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer or his or her representative.
(3)Disability means a condition which precludes the buyer from physically using the services specified in the contract during the term of disability and the condition is verified in writing by a physician designated and remunerated by the buyer. The written verification of the physician shall be presented to the seller.
(4)If the physician determines that the duration of the disability will be less than six months, the seller may extend the term of the contract for a period of six months at no additional charge to the buyer in lieu of cancellation.
(b)(1)If the buyer relocates his or her primary residence further than 50 miles from the dating service office and is unable to transfer the contract to a comparable facility, the buyer may elect to be relieved of the obligation to make payment for services other than those received prior to that relocation, and if the buyer has prepaid any amount for dating services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer. A buyer who elects to be relieved of further obligation pursuant to this subdivision may be charged a predetermined fee not to exceed one hundred dollars ($100) or, if more than half the life of the contract has expired, a predetermined fee not to exceed fifty dollars ($50).
(2)Paragraph (1) shall not apply to online dating services that are generally available to users on a regional, national, or global basis.
(c)In addition to any other requirements, online dating services shall also maintain both of the following features:
(1)A reference or link to dating safety awareness information that includes, at a minimum, a list or descriptions of safety measures reasonably aimed at increasing awareness of safer dating practices.
(2)A means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
(a)As used in this chapter, a dating service contract is any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
(1)An exchange of names, telephone numbers, addresses, and statistics.
(2)A photograph or video selection process.
(3)Personal introductions provided by the organization at its place of business.
(4)A social environment provided by the organization intended primarily as an alternative to other singles bars or club-type environments.
(b)As used in this chapter, an online dating service means any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.
SEC. 2.Section 1694.1 of the Civil Code is amended to read:1694.1.(a)In addition to any other right to revoke an offer, the buyer has the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services.
(b)(1)Cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
(2)In the case of a dating service contract with an online dating service, cancellation occurs when the buyer gives written notice of cancellation by electronic means as specified in email to an email address provided by the seller. Additional electronic means of cancellation may be provided by the agreement or offer.
(c)Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid.
(d)Notice of cancellation given by the buyer need not take the particular form as provided in the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the dating service contract.
(e)All moneys paid pursuant to any contract for dating services shall be refunded within 10 days of receipt of the notice of cancellation.
(f)The buyer may notify the dating service of his or her intent to cancel the contract within the three-day period specified in this section and stop the processing of a credit card voucher or check by telephone notification to the dating service. However, this does not negate the obligation of the buyer to cancel the contract by mail, email or other electronic means, telegram, or delivery as required pursuant to this section.
SEC. 3.Section 1694.2 of the Civil Code is amended to read:1694.2.(a)A dating service contract shall be in writing, which, in the case of an online dating service contract, may be an electronic writing made available for viewing online. A copy of the contract shall be provided to the buyer at the time he or she signs the contract, except that an online dating service shall not be required to provide a copy of the contract where (1) the contract is available for viewing online through a direct link that is provided in a clear and conspicuous manner on the Internet Web site page where the buyer provides consent to the agreement and, (2) upon request by the buyer, the online dating service provides a PDF format or retainable digital copy of the contract.
(b)(1)Every dating service contract shall contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
You, the buyer, may cancel this agreement, without any penalty or obligation, at any time prior to midnight of the original contract sellers third business day following the date of this contract, excluding Sundays and holidays. To cancel this agreement, mail or deliver a signed and dated notice, or send a telegram which states that you, the buyer, are canceling this agreement, or words of similar effect. This notice shall be sent to:
(Name of the business that sold you the contract) |
(Address of the business that sold you the contract). |
(2)Paragraph (1) shall not otherwise apply to an online dating service if the online dating service contract includes the statement in paragraph (1) in a clear and conspicuous manner in close proximity to the first three paragraphs a stand-alone first paragraph of the contract.
(c)(1)The dating service contract shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the name and address of the dating service operator to which the notice of cancellation is to be mailed, and the date the buyer signed the contract.
(2)In the case of an online dating service contract, if the name of the dating service operator and the email address that can be used for cancellation appears in the first paragraph of the contract, in a type size no smaller than that generally used in the body of the document, the other requirements of paragraph (1) shall not apply.
(d)(1)No dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term of any such contract be measured by the life of the buyer. However, the services to be rendered to the buyer under the contract may extend over a period beginning within six months and ending within three years of the date the contract is entered into.
(2)In the case of an online dating service contract, if the initial term is two years or less, and subsequent terms are two years one month or less, paragraph (1) shall not apply.
(e)If a dating service contract is not in compliance with this chapter, the buyer may, at any time, cancel the contract.
SEC. 4.Section 1694.3 of the Civil Code is amended to read:1694.3.(a)Every dating service contract shall contain language providing that:
(1)If by reason of death or disability the buyer is unable to receive all services for which the buyer has contracted, the buyer and the buyers estate may elect to be relieved of the obligation to make payments for services other than those received before death or the onset of disability, except as provided in paragraph (4).
(2)If the buyer has prepaid any amount for services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer or his or her representative.
(3)Disability means a condition which precludes the buyer from physically using the services specified in the contract during the term of disability and the condition is verified in writing by a physician designated and remunerated by the buyer. The written verification of the physician shall be presented to the seller.
(4)If the physician determines that the duration of the disability will be less than six months, the seller may extend the term of the contract for a period of six months at no additional charge to the buyer in lieu of cancellation.
(b)(1)If the buyer relocates his or her primary residence further than 50 miles from the dating service office and is unable to transfer the contract to a comparable facility, the buyer may elect to be relieved of the obligation to make payment for services other than those received prior to that relocation, and if the buyer has prepaid any amount for dating services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer. A buyer who elects to be relieved of further obligation pursuant to this subdivision may be charged a predetermined fee not to exceed one hundred dollars ($100) or, if more than half the life of the contract has expired, a predetermined fee not to exceed fifty dollars ($50).
(2)Paragraph (1) shall not apply to online dating services that are generally available to users on a regional, national, or global basis.
(c)In addition to any other requirements, online dating services shall also maintain both of the following features:
(1)A reference or link to dating safety awareness information that includes, at a minimum, a list or descriptions of safety measures reasonably aimed at increasing awareness of safer dating practices.
(2)A means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
(a)As used in this chapter, a dating service contract is any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
(1)An exchange of names, telephone numbers, addresses, and statistics.
(2)A photograph or video selection process.
(3)Personal introductions provided by the organization at its place of business.
(4)A social environment provided by the organization intended primarily as an alternative to other singles bars or club-type environments.
(b)As used in this chapter, an online dating service means any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.
SEC. 2.Section 1694.1 of the Civil Code is amended to read:1694.1.(a)In addition to any other right to revoke an offer, the buyer has the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services.
(b)(1)Cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
(2)In the case of a dating service contract with an online dating service, cancellation occurs when the online dating service receives from the buyer an email canceling the contract. buyer gives written notice of cancellation by electronic means as specified in the agreement or offer.
(c)Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid.
(d)Notice of cancellation given by the buyer need not take the particular form as provided in the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the dating service contract.
(e)All moneys paid pursuant to any contract for dating services shall be refunded within 10 days of receipt of the notice of cancellation.
(f)The buyer may notify the dating service of his or her intent to cancel the contract within the three-day period specified in this section and stop the processing of a credit card voucher or check by telephone notification to the dating service. However, this does not negate the obligation of the buyer to cancel the contract by mail, email, electronic means, telegram, or delivery as required pursuant to this section.
SEC. 3.Section 1694.2 of the Civil Code is amended to read:1694.2.(a)A dating service contract shall be in writing, which, in the case of an online dating service contract, may be an electronic writing made available for viewing online. A copy of the contract shall be provided to the buyer at the time he or she signs the contract, except that an online dating service shall not be required to provide a copy of the contract where (1) the contract is available for viewing online and, (2) upon request by the buyer, the online dating service provides a PDF format or retainable digital copy of the contract.
(b)(1)Every dating service contract shall contain on its face, and in close
proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
You, the buyer, may cancel this agreement, without any penalty or obligation, at any time prior to midnight of the original contract sellers third business day following the date of this contract, excluding Sundays and holidays. To cancel this agreement, mail or deliver a signed and dated notice, or send a telegram which states that you, the buyer, are canceling this agreement, or words of similar effect. This notice shall be sent to:
(Name of the business that sold you the contract) |
(Address of the business that sold you the contract). |
(2)Paragraph (1) shall not otherwise apply to an online dating service if the online dating service contract includes the statement in paragraph (1) in a clear and conspicuous manner in close proximity to the first three paragraphs of the contract.
(c)(1)The dating service contract shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the name and address of the dating service operator to which the notice of cancellation is to be mailed; mailed, and the date the buyer signed the contract.
(2)In the case of an online dating service contract, if the name of the dating service operator appears in the first paragraph of the contract, the other requirements of paragraph (1) shall not apply.
(d)(1)No dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term of any such contract be measured by the life of the buyer. However, the services to be rendered to the buyer under the contract may extend over a period beginning within six months and ending within three years of the date the contract is entered into.
(2)In the case of an online dating service contract, if the initial term is two years or less, and subsequent terms are two years or less, paragraph (1) shall not apply.
(e)If a dating service contract is not in compliance with this chapter, the buyer may, at any time, cancel the contract.
SEC. 4.Section 1694.3 of the Civil Code is amended to read:1694.3.(a)Every dating service contract shall contain language providing that:
(1)If by reason of death or disability the buyer is unable to receive all services for which the buyer has contracted, the buyer and the buyers estate may elect to be relieved of the obligation to make payments for services other than those received before death or the onset of disability, except as provided in paragraph (4).
(2)If the buyer has prepaid any amount for services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer or his or her representative.
(3)Disability means a condition which precludes the buyer from physically using the services specified in the contract during the term of disability and the condition is verified in writing by a physician designated and remunerated by the buyer. The written verification of the physician shall be presented to the seller.
(4)If the physician determines that the duration of the disability will be less than six months, the seller may extend the term of the contract for a period of six months at no additional charge to the buyer in lieu of cancellation.
(b)(1)If the buyer relocates his or her primary residence further than 50 miles from the dating service office and is unable to transfer the contract to a comparable facility, the buyer may elect to be relieved of the obligation to make payment for services other than those received prior to that relocation, and if the buyer has prepaid any amount for dating services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer. A buyer who elects to be relieved of further obligation pursuant to this subdivision may be charged a predetermined fee not to exceed one hundred dollars ($100) or, if more than half the life of the contract has expired, a predetermined fee not to exceed fifty dollars ($50).
(2)Paragraph (1) shall not apply to online dating services that are generally available to users on a regional, national, or global basis.
(c)(1)In addition to any other requirements, online dating services shall also maintain both of the following features:
(A)(1)A reference or link to dating safety awareness information that includes, at a minimum, a list or descriptions of safety measures reasonably aimed at increasing awareness of safer dating practices.
(B)(2)A means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
(2)Liability shall not attach if an online dating service attempts to comply in good faith with the conditions imposed in this subdivision and only technical or procedural noncompliance exists.(a)As used in this chapter, a dating service contract is any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
(a)(1)An exchange of names, telephone numbers, addresses, and statistics.
(b)(2)A photograph or video selection process.
(c)(3)Personal introductions provided by the organization at its place of business.
(d)(4)A social environment provided by the organization intended primarily as an alternative to other singles bars or club-type environments.
(b)As used in this chapter, an online dating service means any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.
SEC. 2.Section 1694.1 of the Civil Code is amended to read:1694.1.(a)In addition to any other right to revoke an offer, the buyer has the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services.
(b)(1)Cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
(2)In the case of a dating service contract with an online dating service, cancellation occurs when the online dating service receives from the buyer an email canceling the contract.
(c)Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid.
(d)Notice of cancellation given by the buyer need not take the particular form as provided in the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the dating service contract.
(e)All moneys paid pursuant to any contract for dating services shall be refunded within 10 days of receipt of the notice of cancellation.
(f)The buyer may notify the dating service of his or her intent to cancel the contract within the three-day period specified in this section and stop the processing of a credit card voucher or check by telephone notification to the dating service. However, this does not negate the obligation of the buyer to cancel the contract by mail, email, telegram, or delivery as required pursuant to this section.
SEC. 3.Section 1694.2 of the Civil Code is amended to read:1694.2.(a)A dating service contract shall be in writing. writing, which, in the case of an online dating service contract, may be an electronic writing made available for viewing online. A copy of the contract shall be provided to the buyer at the time he or she signs the contract. contract, except that an online dating service shall not be required to provide a copy of the contract where (1) the contract is available for viewing online and, (2) upon request by the buyer, the online dating service provides a PDF format or retainable digital copy of the contract.
(b)(1)Every dating service contract shall contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
You, the buyer, may cancel this agreement, without any penalty or obligation, at any time prior to midnight of the original contract sellers third business day following the date of this contract, excluding Sundays and holidays. To cancel this agreement, mail or deliver a signed and dated notice, or send a telegram which states that you, the buyer, are canceling this agreement, or words of similar effect. This notice shall be sent to:
(Name of the business that sold you the contract) |
(Address of the business that sold you the contract). |
(2)Paragraph (1) shall not otherwise apply to an online dating service if the online dating service contract includes the statement in paragraph (1) in a clear and conspicuous manner in close proximity to the first three paragraphs of the contract.
(c)(1)The dating service contract shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the name and address of the dating service operator to which the notice of cancellation is to be mailed; and the date the buyer signed the contract.
(2)In the case of an online dating service contract, if the name of the dating service operator appears in the first paragraph of the contract, the other requirements of paragraph (1) shall not apply.
(d)(1)No dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term of any such contract be measured by the life of the buyer. However, the services to be rendered to the buyer under the contract may extend over a period beginning within six months and ending within three years of the date the contract is entered into.
(2)In the case of an online dating service contract, if the initial term is two years or less, and subsequent terms are two years or less, paragraph (1) shall not apply.
(e)If a dating service contract is not in compliance with this chapter, the buyer may, at any time, cancel the contract.
SEC. 4.Section 1694.3 of the Civil Code is amended to read:1694.3.(a)Every dating service contract shall contain language providing that:
(a)(1)If by reason of death or disability the buyer is unable to receive all services for which the buyer has contracted, the buyer and the buyers estate may elect to be relieved of the obligation to make payments for services other than those received before death or the onset of disability, except as provided in paragraph (3). (4).
(1)(2)If the buyer has prepaid any amount for services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer or his or her representative.
(2)(3)Disability means a condition which precludes the buyer from physically using the services specified in the contract during the term of disability and the condition is verified in writing by a physician designated and remunerated by the buyer. The written verification of the physician shall be presented to the seller.
(3)(4)If the physician determines that the duration of the disability will be less than six months, the seller may extend the term of the contract for a period of six months at no additional charge to the buyer in lieu of cancellation.
(b)(1)If the buyer relocates his or her primary residence further than 50 miles from the dating service office and is unable to transfer the contract to a comparable facility, the buyer may elect to be relieved of the obligation to make payment for services other than those received prior to that relocation, and if the buyer has prepaid any amount for dating services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer. A buyer who elects to be relieved of further obligation pursuant to this subdivision may be charged a predetermined fee not to exceed one hundred dollars ($100) or, if more than half the life of the contract has expired, a predetermined fee not to exceed fifty dollars ($50).
(2)Paragraph (1) shall not apply to online dating services that are generally available to users on a regional, national, or global basis.
(c)(1)In addition to any other requirements, online dating services shall also maintain both of the following features:
(A)A reference or link to dating safety awareness information that includes, at a minimum, a list or descriptions of safety measures reasonably aimed at increasing awareness of safer dating practices.
(B)A means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
(2)Liability shall not attach if an online dating service attempts to comply in good faith with the conditions imposed in this subdivision and only technical or procedural noncompliance exists.
SECTION 1.Section 1694 of the Civil Code is amended to read:1694.(a)Except as provided in subdivision (b), as used in this chapter, a dating service contract is any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:(1)An exchange of names, telephone numbers, addresses, and statistics.(2)A photograph or video selection process.(3)Personal introductions provided by the organization at its place of business.(4)A social environment provided by the organization intended primarily as an alternative to other singles bars or club-type environments.(b)This chapter does not apply to an online dating service contract between a buyer and a person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application, if the following conditions are met:(1)The buyer can view the contract terms, which shall include notice of the right to cancel described in paragraph (2) and the death and disability provisions set forth in subdivision (a) of Section 1694.3, before entering the contract.(2)The buyer can cancel the contract in the same manner as set forth in Section 1694.1, with the addition of being permitted to give written notice of cancellation by e-mail, without liability and with a refund of all moneys paid pursuant to the contract, until midnight of the third business day after the day on which the buyer entered the contract.(3)The initial term of the contract, excluding any renewal or extension of the contract, does not exceed two years from the date the contract is entered into and is not measured by the life of the buyer.(4)The online dating service provides the buyer the ability to alter the user settings such that the online dating service will no longer cause the buyers profile to be distributed for public display on the user-facing Internet Web sites or applications of the online dating service. The online dating service shall effectuate this preference within a reasonable period, not to exceed three business days.(5)The online dating service provides, references, or otherwise links to dating safety awareness information that includes, at a minimum, a list or descriptions of safety measures reasonably aimed at increasing awareness of safer dating practices.(6)The online dating service provides the buyer with a means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.(c)If an online dating service attempts to comply in good faith with the conditions imposed in subdivision (b), technical or procedural noncompliance shall not disqualify the person or organization as an online dating service for the purpose of that subdivision.(a)Except as provided in subdivision (b), as used in this chapter, a dating service contract is any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
(1)An exchange of names, telephone numbers, addresses, and statistics.
(2)A photograph or video selection process.
(3)Personal introductions provided by the organization at its place of business.
(4)A social environment provided by the organization intended primarily as an alternative to other singles bars or club-type environments.
(b)This chapter does not apply to an Internet online dating service contract between a buyer and a person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site, or by means of site or a mobile application, if the following conditions are met:
(1)The buyer can view the contract terms, which shall include notice of the right to cancel described in paragraph (2), (2) and the death and disability provisions set forth in subdivision (a) of Section 1694.3, before entering the contract.
(2)The buyer can cancel the contract in the same manner as set forth in Section 1694.1, with the addition of being permitted to give written notice of cancellation by e-mail, without liability and with a refund of all moneys paid pursuant to the contract, until midnight of the third business day after the day on which the buyer entered the contract.
(3)The initial term of the contract, excluding any renewal or extension of the contract, does not exceed two years from the date the contract is entered into and is not measured by the life of the buyer.
(4)The online dating service provides the buyer the ability to alter the user settings such that the online dating service will no longer cause the buyers profile to be distributed for public display on the user-facing Internet Web sites or applications of the online dating service. The online dating service shall effectuate this preference within a reasonable period, not to exceed three business days.
(5)The online dating service provides, references, or otherwise links to dating safety awareness information that includes, at a minimum, a list or descriptions of safety measures reasonably aimed at increasing awareness of safer dating practices.
(6)The online dating service provides the buyer with a means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
(c)If an online dating service attempts to comply in good faith with the conditions imposed in subdivision (b), technical or procedural noncompliance shall not disqualify the person or organization as an online dating service for the purpose of that subdivision.
As (a)Except as provided in subdivision (b), as used in this chapter, a dating service contract is any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
(a)(1)An exchange of names, telephone numbers, addresses, and statistics.
(b)(2)A photograph or video selection process.
(c)(3)Personal introductions provided by the organization at its place of business.
(d)(4)A social environment provided by the organization intended primarily as an alternative to other singles bars or club-type environments.
(b)This chapter does not apply to an Internet dating service contract between a buyer and a person or organization engaged in the business of offering dating, matrimonial, or social referral services online, by means of an Internet Web site, or by means of a mobile application, if the following conditions are met:
(1)The buyer can view the contract terms, which shall include notice of the right to cancel described in paragraph (2), before entering the contract.
(2)The buyer can cancel the contract in the same manner as Section 1694.1, without liability and with a refund of all moneys paid pursuant to the contract, until midnight of the third business day after the day on which the buyer entered the contract.
|
Date
|
Status
|
|---|---|
| Oct 8, 2017 | Chaptered by Secretary of State - Chapter 578, Statutes of 2017. |
| Oct 8, 2017 | Approved by the Governor. |
| Sep 20, 2017 | Enrolled and presented to the Governor at 4:30 p.m. |
| Sep 13, 2017 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 1. Page 3309.). |
| Sep 12, 2017 | Assembly Rule 77(a) suspended. |
| Sep 11, 2017 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 13 pursuant to Assembly Rule 77. |
| Sep 11, 2017 | Read third time. Passed. Ordered to the Assembly. |
| Sep 7, 2017 | Read second time. Ordered to third reading. |
| Sep 6, 2017 | Read third time and amended. Ordered to second reading. |
| Aug 22, 2017 | Read second time and amended. Ordered to third reading. |
| Aug 21, 2017 | From committee: Amend, and do pass as amended. (Ayes 5. Noes 0.) (July 18). |
| Jun 14, 2017 | Referred to Com. on JUD. |
| Jun 5, 2017 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 1, 2017 | Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 4. Page 2064.) |
| May 22, 2017 | Read third time and amended. Ordered to third reading. (Page 1649.) |
| May 4, 2017 | Read second time. Ordered to third reading. |
| May 3, 2017 | From committee: Do pass. (Ayes 8. Noes 0.) (May 2). |
| May 1, 2017 | Re-referred to Com. on P. & C.P. |
| Apr 27, 2017 | From committee chair, with author's amendments: Amend, and re-refer to Com. on P. & C.P. Read second time and amended. |
| Apr 17, 2017 | In committee: Hearing postponed by committee. |
| Mar 27, 2017 | In committee: Hearing postponed by committee. |
| Mar 23, 2017 | Re-referred to Com. on P. & C.P. |
| Mar 22, 2017 | From committee chair, with author's amendments: Amend, and re-refer to Com. on P. & C.P. Read second time and amended. |
| Feb 21, 2017 | Referred to Com. on P. & C.P. |
| Feb 7, 2017 | From printer. May be heard in committee March 9. |
| Feb 6, 2017 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 13, 2017 | AB 314 MULLIN Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 11, 2017 | Assembly 3rd Reading AB314 Mullin By Hertzberg | Senate Floor |
Passed |
|
| Jul 18, 2017 | Do pass as amended | Senate Standing Committee on Judiciary |
Passed |
|
| Jun 1, 2017 | AB 314 MULLIN Assembly Third Reading | Assembly Floor |
Passed |
|
| May 2, 2017 | Do pass. | Assembly Standing Committee on Privacy and Consumer Protection |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Auto Renewal Task Force | ** Against | Sep 8, 2017 |
| City of Santa Monica | ** Against | Sep 8, 2017 |
| Los Angeles County District Attorney'S Office | ** Against | Sep 8, 2017 |
| Match.com | ** Support | Sep 8, 2017 |
| Napa County District Attorney's Office | ** Against | Sep 8, 2017 |
| San Diego County District Attorney's Office | ** Against | Sep 8, 2017 |
| Santa Clara County District Attorney's Office | ** Against | Sep 8, 2017 |
| Santa Cruz County District Attorney's Office | ** Against | Sep 8, 2017 |
| Shasta County District Attorney's Office | ** Against | Sep 8, 2017 |
| The Internet Association | ** Support | Sep 8, 2017 |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 314
Author:(Mullin)
As Amended Ver:September 6, 2017
Majority vote
ASSEMBLY: | 74-4 | (June 1, 2017) | SENATE: | 35-0 | (September 11, 2017) |
Original Committee Reference: P. & C.P.
SUMMARY: Revises California's dating service contract law to provide certain alternative requirements for online dating services.
The Senate amendments:
- Clarify that in the case of an online dating service contract, cancellation occurs when the buyer gives written notice of cancellation by email to an email address provided by the seller, and that additional electronic means of cancellation may be provided by the agreement or offer.
- Specify that a dating service shall not be required to provide a copy of the contract where the contract is available through a direct link that is provided in a clear and conspicuous manner on the Internet Web Site page where the buyer provides consent to the agreement.
- Specify that an online dating service contract include the cancellation statement in a stand-alone first paragraph.
- Clarify that an online dating service contract can be canceled electronically if the email address that can be used for cancellation appears in the first paragraph of the contract, in a type size no smaller than that generally used in the body of the document, and if the initial term is one year or less and subsequent terms of the contract are one year or less.
- Make other technical and clarifying changes.
EXISTING LAW:
- Enacts the Dating Service Contract Act (DSCA), which generally regulates dating service contracts. (Civil Code Section (CC) 1694, et seq.)
- Gives a buyer the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services. (CC 1694.1)
- Requires a dating service contract to be in writing and requires that a copy of the contract be provided to the buyer at the time he or she signs the contract. (CC 1694.2(a))
- Requires that a dating service contract contain a conspicuous statement, placed as specified, regarding the right of the buyer to cancel the agreement. (CC 1694.2(b))
- Prohibits a dating service contract from spanning a period in excess of two years, or the life of the buyer, as specified. (CC 1694.2(d))
- Requires a dating service contract to permit the cancellation of a dating service contract due to the buyer's death or disability. (CC 1694.3(a))
FISCAL EFFECT: None. This bill is keyed non-fiscal by the Legislative Counsel.
COMMENTS:
This bill is intended to modify existing laws regulating dating services to make it easier for online and mobile dating services to comply.
The DSCA originated in 1989 as a result of AB 320 (Speier), Chapter 138, which laid out the rough parameters of today's dating services statute. It was last amended in 1993 by AB 1323 (Speier), Chapter 359.
The DSCA generally applies to any dating service contract that allows the exchange of personal information, pictures or videos. While it was written in the pre-internet days, the language of DSCA does not exclude online or mobile services. The statute generally gives buyers a three-day right of rescission, a right to a copy of the contract, a right to cancel for reasons of death, disability or relocation, and conspicuous disclosures of those rights in the contract. The statute also provides limits on contract length. These protections can be enforced for fraud or noncompliance by voiding of the contract, and a right to legal action for up to three times the damages suffered.
As noted above, the author's aim was to modernize DSCA to reflect the reality of online dating services and the significant differences in operation between them. While the bill makes a number of changes, the bill is largely designed to exempt online dating service contracts from certain requirements under existing law, and instead provides alternate requirements that the author feels are more appropriate to an online business model.
Analysis Prepared by: Hank Dempsey / P. & C.P. / (916) 319-2200 FN: 0002224
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 314
:
SENATE JUDICIARY COMMITTEE: 5-0, 7/18/17
AYES: Jackson, Anderson, Hertzberg, Stern, Wieckowski
NO VOTE RECORDED: Moorlach, Monning
ASSEMBLY FLOOR: 74-4, 6/1/17 - See last page for vote
The Internet Association
DIGEST:
This bill amends the provisions of law applying to online dating services contracts. This bill amends or exempts such online dating service providers from various existing requirements.
Senate Floor Amendments of 9/6/17 exempt online dating services providers from provisions in existing law that limit the financing options and duration of dating services contracts if the initial term of the online dating services contract is one year or less and subsequent renewal terms are one year or less.
Existing law:
- Governs dating service contracts in California. The law defines a “dating service contract” as any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
- An exchange of names, telephone numbers, addresses, and statistics;
- A photograph or video selection process;
- Personal introductions provided by the organization at its place of business; or
- A social environment provided by the organization intended primarily as an alternative to other singles’ bars or club-type environments. (Civ. Code Sec. 1694.)
- Provides that, in addition to any other right to revoke an offer, the buyer has the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services. Cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer. Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid. Notice of cancellation given by the buyer need not take the particular form as provided in the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the dating service contract. All moneys paid pursuant to any contract for dating services shall be refunded within 10 days of receipt of the notice of cancellation. (Civ. Code Sec. 1694.1.)
- Requires a dating service contract to be in writing and to be provided to the buyer at the time the buyer signs the contract. The dating service contract shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the name and address of the dating service operator to which the notice of cancellation is to be mailed; and the date the buyer signed the contract. The contract must contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
You, the buyer, may cancel this agreement, without any penalty or obligation, at any time prior to midnight of the original contract seller’s third business day following the date of this contract, excluding Sundays and holidays. To cancel this agreement, mail or deliver a signed and dated notice, or send a telegram which states that you, the buyer, are canceling this agreement, or words of similar effect. This notice shall be sent to: [Lines provided for the name and address of the seller.] (Civ. Code Sec. 1694.2.)
- Provides that no dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term of any such contract be measured by the life of the buyer. However, the services to be rendered to the buyer under the contract may extend over a period beginning within six months and ending within three years of the date the contract is entered into. (Civ. Code Sec. 1694.2(d).)
- Provides that if a dating service contract is not in compliance with Civil Code Section 1694 et seq., the buyer may, at any time, cancel the contract. (Civ. Code Sec. 1694.2(e).)
- Provides that if the buyer relocates the buyer’s primary residence farther than 50 miles from the dating service office and is unable to transfer the contract to a comparable facility, the buyer may elect to be relieved of the obligation to make payment for services other than those received prior to that relocation, and if the buyer has prepaid any amount for dating services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer. A buyer who elects to be relieved of further obligation pursuant to this subdivision may be charged a predetermined fee not to exceed $100 or, if more than half the life of the contract has expired, a predetermined fee not to exceed $50. (Civ. Code Sec. 1694.3(b).)
- Provides that any contract for dating services which does not comply with Civil Code Section 1694 et seq. is void and unenforceable. Any waiver by the buyer of those provisions is void and unenforceable. Any contract for dating services entered into under willful and fraudulent or misleading information or advertisements of the seller is void and unenforceable. Any buyer injured by a violation of this chapter may bring an action for the recovery of damages in a court of competent jurisdiction. Judgment may be entered for three times the amount at which the actual damages are assessed. Reasonable attorney fees may be awarded to the prevailing party. (Civ. Code Sec. 1694.4.)
This bill:
- Defines an “online dating service” as any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.
- Provides that for an online dating service, cancellation of the dating service contract occurs when the buyer gives written notice of cancellation by email or other electronic means as specified.
- Provides that an online dating service contract needs to be made available through a direct link provided on the Internet Web site page where the buyer provides consent to the agreement. A PDF format or retainable digital copy of the contract must be provided when a buyer requests it.
- Requires an online dating service to include the cancellation statement found in Civil Code Section 1694.2(b) in a clear and conspicuous manner in a stand-alone first paragraph of the contract. The paragraph shall include the seller’s name and the email address that can be used for cancellation.
- Provides that if an online dating services contract has an initial term of up to one year and subsequent terms of up to one year it is exempt from existing law governing the financing and duration of dating services contracts.
- Exempts online dating services that are generally available to users on a regional, national, or global basis from the requirements of Civil Code Section 1694.3(b) regarding the right to end a contractual relationship when the buyer moves a certain distance from the initial or a comparable facility.
- Requires online dating services to maintain a reference to dating safety awareness information that includes, at a minimum, a list or descriptions of safety measures reasonably aimed at increasing awareness of safer dating practices and a means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
Background
Civil Code Section 1694 et seq. governs dating service contracts in California. The law defines a “dating service contract” as “any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
- An exchange of names, telephone numbers, addresses, and statistics;
- A photograph or video selection process;
- Personal introductions provided by the organization at its place of business; or
- A social environment provided by the organization intended primarily as an alternative to other singles’ bars or club-type environments.
Current law provides for a three-day right of cancellation of dating services contracts and requires a disclosure of this right to appear prominently in the contract. The law also requires certain other disclosures in these contracts and requires the seller to provide a copy of the contract to the buyer. Existing law also provides buyers of these services the ability to cancel if they relocate outside of a certain area.
This bill applies a different set of requirements to “online dating services,” which would be defined as “any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.” This bill modernizes some provisions to accommodate new technologies, but it also rolls back some consumer protection provisions.
Comments
The author writes:
The Internet has given rise to technologies and services that have altered the landscape of certain industries, including dating services. According to the Internet Association, one third of relationships today start online. When the California Dating Service Contract Act was passed in 1989, the dating industry landscape looked dramatically different than it does today. The industry at that time mainly consisted of brick-and-mortar businesses. AB 314 simply updates the California Civil Code to reflect the reality of on-line social interaction.
The balance between modernization and consumer protection
The sponsors of this bill, Match.com and the Internet Association, urge support for this bill as necessary legislation to modernize the law governing dating services contracts. This bill makes a number of changes to the existing law, but only as it applies to online dating services, as defined. There are provisions that benefit from amendment to reflect the technological advances that have taken place since these laws were first enacted; however, some of this bill’s provisions would arguably jeopardize important consumer protections leading to a number of district attorneys’ offices opposing this bill. Many of them indicate that there are ongoing investigations of online dating services violating current law, including the statute amended by this bill.
Indeed, the Napa County District Attorney’s Office indicates that its investigation involves serious abuses of consumer rights including violations of the California Dating Service Contract Law. Those in opposition also point to many consumer complaints that allege Match.com LLC has continued to bill them for services although they had cancelled their memberships, failed to provide refunds as promised, and hid details about automatic renewals.
Litigation has been brought against online dating services in recent years, alleging violations of the current law. In one such class action, consumers alleged that the online service failed to provide notice of the three-day right of cancellation, failed to include the name and address of the online service operator to which cancellation could be sent. (Howell v. Grindr, LLC (S.D. Cal. 2015) 2015 U.S.Dist.LEXIS 167669, at *20-21.) In that case, the court specifically found that although “concerns regarding high pressure sales tactics” might not be applicable to an online dating service, “consumer protection laws to prevent fraud in dating services contracts can have practical application to online transactions or can fit within the statutory scheme.” (Id.)
Consumer access to the terms of the contract
Existing law requires a dating service contract (1) to be in writing and (2) to be provided to the consumer at the time the consumer signs the contract. This bill allows an electronic writing to serve the first requirement. Online contracts have become ubiquitous; allowing for a contract to be electronic is arguably a sensible update to the law. However, this bill eliminates the requirement that a consumer be provided the contract for online dating services. A consumer would have to formally request a contract before being provided a copy. The online service is required to have the contract available through a direct link on the Internet Web site page where the buyer provides consent to the agreement.
Cancellation and disclosure
Existing law grants consumers the right to cancel a dating service contract within three days. It provides that cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer. This bill provides that cancellation occurs when the consumer gives written notice of cancellation by email to an email address provided by the seller. The seller can also provide other electronic means.
Existing law grants consumers the right to cancel a dating service contract within three days. It further requires every such contract to contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement that explains the right and method to cancel, without any penalty or obligation, at any time prior to midnight of the third business day following the date of this contract. This bill instead requires online dating service contracts to provide this statement in “a clear and conspicuous manner in a stand-alone first paragraph of the contract.” This ensures the cancellation information, including the seller’s email address, is at the very top of the contract and is separate from other contractual terms. Law enforcement groups in opposition contend this information should be on the Web page where the contract is agreed to by the consumer.
Contract period
Existing law provides that no dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term be measured by the life of the buyer. Existing law permits the services to be rendered to the buyer under the contract to extend over a period beginning within six months and ending within three years of formation. This bill exempts online dating services from these provisions so long as the initial term of the online dating services contract is anywhere up to one year and subsequent renewal terms are one year or less. Writing in opposition, the Los Angeles County District Attorney’s Office contends: “AB 314 also amends Civil Code Sections 1694.2(d) and (e) to exempt online dating services from the restrictions on locking consumers into long term contracts. These protections are no less important simply because the service is provided online.”
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Match.com (co-source)
The Internet Association (co-source)
California Auto Renewal Task Force
City of Santa Monica
Los Angeles County District Attorney’s Office
Napa County District Attorney’s Office
San Diego County District Attorney’s Office
Santa Clara County District Attorney’s Office
Santa Cruz County District Attorney’s Office
Shasta County District Attorney’s Office
ARGUMENTS IN SUPPORT: Match.com writes: “Assembly Bill 314 retains key protections for consumers from the existing law and ensures they apply to online dating products.”
The Internet Association writes: “AB 314 would modernize the DSCA by acknowledging the existence of online dating services and updating current statute to reflect the way these businesses interact with consumers in the digital world.”
ARGUMENTS IN OPPOSITION: The Santa Clara County District Attorney’s Office contends this bill “represents a significant retreat from current consumer protection.” The California Auto Renewal Task Force writes in opposition:
[T]he bill continues to allow online dating services to hide the disclosure of the 3-day cooling off period and right to cancel. Further the bill allows online dating services to circumvent the temporal contract limitation with a “stealth” automatic renewal and imposes the burden of obtaining a copy of the contract upon the consumer. These provisions do not modernize the law but weaken its consumer protections.
The San Diego County District Attorney’s Office writes in opposition that this bill “allows internet-based dating service providers to dispense with the requirement to provide a copy of the dating services contract to the consumer. Instead, internet-based service providers are only obligated to supply a copy of the contract upon consumer request. It is very unlikely the typical consumer would be aware of his or her right to request a copy of the contract.”
ASSEMBLY FLOOR: 74-4, 6/1/17
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Chávez, Chen, Chiu, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NOES: Cervantes, Frazier, Gloria, Muratsuchi
NO VOTE RECORDED: Chau, Choi
9/8/17 10:51:19
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 314
:
SENATE JUDICIARY COMMITTEE: 5-0, 7/18/17
AYES: Jackson, Anderson, Hertzberg, Stern, Wieckowski
NO VOTE RECORDED: Moorlach, Monning
ASSEMBLY FLOOR: 74-4, 6/1/17 - See last page for vote
The Internet Association
DIGEST:
This bill amends the provisions of law applying to online dating services contracts. This bill amends or exempts such online dating service providers from various existing requirements.
Existing law:
- Governs dating service contracts in California. The law defines a “dating service contract” as any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
- An exchange of names, telephone numbers, addresses, and statistics;
- A photograph or video selection process;
- Personal introductions provided by the organization at its place of business; or
- A social environment provided by the organization intended primarily as an alternative to other singles’ bars or club-type environments. (Civ. Code Sec. 1694.)
- Provides that, in addition to any other right to revoke an offer, the buyer has the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services. Cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer. Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid. Notice of cancellation given by the buyer need not take the particular form as provided in the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the dating service contract. All moneys paid pursuant to any contract for dating services shall be refunded within 10 days of receipt of the notice of cancellation. (Civ. Code Sec. 1694.1.)
- Requires a dating service contract to be in writing and to be provided to the buyer at the time the buyer signs the contract. The dating service contract shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the name and address of the dating service operator to which the notice of cancellation is to be mailed; and the date the buyer signed the contract. The contract must contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
You, the buyer, may cancel this agreement, without any penalty or obligation, at any time prior to midnight of the original contract seller’s third business day following the date of this contract, excluding Sundays and holidays. To cancel this agreement, mail or deliver a signed and dated notice, or send a telegram which states that you, the buyer, are canceling this agreement, or words of similar effect. This notice shall be sent to: [Lines provided for the name and address of the seller.] (Civ. Code Sec. 1694.2.)
- Provides that no dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term of any such contract be measured by the life of the buyer. However, the services to be rendered to the buyer under the contract may extend over a period beginning within six months and ending within three years of the date the contract is entered into. (Civ. Code Sec. 1694.2(d).)
- Provides that if a dating service contract is not in compliance with Civil Code Section 1694 et seq., the buyer may, at any time, cancel the contract. (Civ. Code Sec. 1694.2(e).)
- Provides that if the buyer relocates the buyer’s primary residence farther than 50 miles from the dating service office and is unable to transfer the contract to a comparable facility, the buyer may elect to be relieved of the obligation to make payment for services other than those received prior to that relocation, and if the buyer has prepaid any amount for dating services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer. A buyer who elects to be relieved of further obligation pursuant to this subdivision may be charged a predetermined fee not to exceed $100 or, if more than half the life of the contract has expired, a predetermined fee not to exceed $50. (Civ. Code Sec. 1694.3(b).)
- Provides that any contract for dating services which does not comply with Civil Code Section 1694 et seq. is void and unenforceable. Any waiver by the buyer of those provisions is void and unenforceable. Any contract for dating services entered into under willful and fraudulent or misleading information or advertisements of the seller is void and unenforceable. Any buyer injured by a violation of this chapter may bring an action for the recovery of damages in a court of competent jurisdiction. Judgment may be entered for three times the amount at which the actual damages are assessed. Reasonable attorney fees may be awarded to the prevailing party. (Civ. Code Sec. 1694.4.)
This bill:
- Defines an “online dating service” as any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.
- Provides that for an online dating service, cancellation of the dating service contract occurs when the buyer gives written notice of cancellation by email or other electronic means as specified.
- Provides that an online dating service contract needs to be made available through a direct link provided on the Internet Web site page where the buyer provides consent to the agreement. A PDF format or retainable digital copy of the contract must be provided when a buyer requests it.
- Requires an online dating service to include the cancellation statement found in Civil Code Section 1694.2(b) in a clear and conspicuous manner in a stand-alone first paragraph of the contract. The paragraph shall include the seller’s name and the email address that can be used for cancellation.
- Provides that an online dating service contract can have an initial term of up to two years and subsequent terms of up to one month.
- Exempts online dating services that are generally available to users on a regional, national, or global basis from the requirements of Civil Code Section 1694.3(b) regarding the right to end a contractual relationship when the buyer moves a certain distance from the initial or a comparable facility.
- Requires online dating services to maintain a reference to dating safety awareness information that includes, at a minimum, a list or descriptions of safety measures reasonably aimed at increasing awareness of safer dating practices and a means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
Background
Civil Code Section 1694 et seq. governs dating service contracts in California. The law defines a “dating service contract” as “any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
- An exchange of names, telephone numbers, addresses, and statistics;
- A photograph or video selection process;
- Personal introductions provided by the organization at its place of business; or
- A social environment provided by the organization intended primarily as an alternative to other singles’ bars or club-type environments.
Current law provides for a three-day right of cancellation of dating services contracts and requires a disclosure of this right to appear prominently in the contract. The law also requires certain other disclosures in these contracts and requires the seller to provide a copy of the contract to the buyer. Existing law also provides buyers of these services the ability to cancel if they relocate outside of a certain area.
This bill applies a different set of requirements to “online dating services,” which would be defined as “any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.” This bill modernizes some provisions to accommodate new technologies, but it also rolls back some consumer protection provisions.
Comments
The author writes:
The Internet has given rise to technologies and services that have altered the landscape of certain industries, including dating services. According to the Internet Association, one third of relationships today start online. When the California Dating Service Contract Act was passed in 1989, the dating industry landscape looked dramatically different than it does today. The industry at that time mainly consisted of brick-and-mortar businesses. AB 314 simply updates the California Civil Code to reflect the reality of on-line social interaction.
The balance between modernization and consumer protection
The sponsors of this bill, Match.com and the Internet Association, urge support for this bill as necessary legislation to modernize the law governing dating services contracts. This bill makes a number of changes to the existing law, but only as it applies to online dating services, as defined. There are provisions that benefit from amendment to reflect the technological advances that have taken place since these laws were first enacted; however, some of this bill’s provisions would arguably jeopardize important consumer protections leading to a number of district attorneys’ offices opposing this bill. Many of them indicate that there are ongoing investigations of online dating services violating current law, including the statute amended by this bill.
Indeed, the Napa County District Attorney’s Office indicates that its investigation involves serious abuses of consumer rights including violations of the California Dating Service Contract Law. Those in opposition also point to many consumer complaints that allege Match.com LLC has continued to bill them for services although they had cancelled their memberships, failed to provide refunds as promised, and hid details about automatic renewals.
Litigation has been brought against online dating services in recent years, alleging violations of the current law. In one such class action, consumers alleged that the online service failed to provide notice of the three-day right of cancellation, failed to include the name and address of the online service operator to which cancellation could be sent. (Howell v. Grindr, LLC (S.D. Cal. 2015) 2015 U.S.Dist.LEXIS 167669, at *20-21.) In that case, the court specifically found that although “concerns regarding high pressure sales tactics” might not be applicable to an online dating service, “consumer protection laws to prevent fraud in dating services contracts can have practical application to online transactions or can fit within the statutory scheme.” (Id.)
Consumer access to the terms of the contract
Existing law requires a dating service contract (1) to be in writing and (2) to be provided to the consumer at the time the consumer signs the contract. This bill allows an electronic writing to serve the first requirement. Online contracts have become ubiquitous; allowing for a contract to be electronic is arguably a sensible update to the law. However, this bill eliminates the requirement that a consumer be provided the contract for online dating services. A consumer would have to formally request a contract before being provided a copy. The online service is required to have the contract available through a direct link on the Internet Web site page where the buyer provides consent to the agreement.
Cancellation and disclosure
Existing law grants consumers the right to cancel a dating service contract within three days. It provides that cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer. This bill provides that cancellation occurs when the consumer gives written notice of cancellation by email to an email address provided by the seller. The seller can also provide other electronic means.
Existing law grants consumers the right to cancel a dating service contract within three days. It further requires every such contract to contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement that explains the right and method to cancel, without any penalty or obligation, at any time prior to midnight of the third business day following the date of this contract. This bill instead requires online dating service contracts to provide this statement in “a clear and conspicuous manner in a stand-alone first paragraph of the contract.” This ensures the cancellation information, including the seller’s email address, is at the very top of the contract and is separate from other contractual terms. Law enforcement groups in opposition contend this information should be on the Web page where the contract is agreed to by the consumer.
Contract period
Existing law provides that no dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term be measured by the life of the buyer. Existing law permits the services to be rendered to the buyer under the contract to extend over a period beginning within six months and ending within three years of formation. This bill exempts online dating services from these provisions so long as the initial term of the online dating services contract is anywhere up to two years and subsequent terms are one month or less. Writing in opposition, the Los Angeles County District Attorney’s Office contends: “AB 314 also amends Civil Code Sections 1694.2(d) and (e) to exempt online dating services from the restrictions on locking consumers into long term contracts. These protections are no less important simply because the service is provided online.”
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Match.com (co-source)
The Internet Association (co-source)
OPPOSITION: (Verified 8/22/17)
California Auto Renewal Task Force
City of Santa Monica
Los Angeles County District Attorney’s Office
Napa County District Attorney’s Office
San Diego County District Attorney’s Office
Santa Clara County District Attorney’s Office
Santa Cruz County District Attorney’s Office
Shasta County District Attorney’s Office
ARGUMENTS IN SUPPORT: Match.com writes: “Assembly Bill 314 retains key protections for consumers from the existing law and ensures they apply to online dating products.”
The Internet Association writes: “AB 314 would modernize the DSCA by acknowledging the existence of online dating services and updating current statute to reflect the way these businesses interact with consumers in the digital world.”
ARGUMENTS IN OPPOSITION: The Santa Clara County District Attorney’s Office contends this bill “represents a significant retreat from current consumer protection.” The California Auto Renewal Task Force writes in opposition:
[T]he bill continues to allow online dating services to hide the disclosure of the 3-day cooling off period and right to cancel. Further the bill allows online dating services to circumvent the temporal contract limitation with a “stealth” automatic renewal and imposes the burden of obtaining a copy of the contract upon the consumer. These provisions do not modernize the law but weaken its consumer protections.
The San Diego County District Attorney’s Office writes in opposition that this bill “allows internet-based dating service providers to dispense with the requirement to provide a copy of the dating services contract to the consumer. Instead, internet-based service providers are only obligated to supply a copy of the contract upon consumer request. It is very unlikely the typical consumer would be aware of his or her right to request a copy of the contract.”
ASSEMBLY FLOOR: 74-4, 6/1/17
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Chávez, Chen, Chiu, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NOES: Cervantes, Frazier, Gloria, Muratsuchi
NO VOTE RECORDED: Chau, Choi
8/23/17 10:53:53
**** END ****
Senator Hannah-Beth Jackson, Chair
2017-2018 Regular Session
Bill No: AB 314 (Author:Mullin)
Version: May 22, 2017
Hearing Date: July 18, 2017
Fiscal: No
Urgency: No
Consultant: CK
SUBJECT
Dating service contracts: online services
DESCRIPTION
This bill would amend the provisions of law applying to online dating services contracts. It would amend or exempt such online dating service providers from various existing requirements.
BACKGROUND
Civil Code Section 1694 et seq. governs dating service contracts in California. The law defines a “dating service contract” as “any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
- an exchange of names, telephone numbers, addresses, and statistics;
- a photograph or video selection process;
- personal introductions provided by the organization at its place of business; or
- a social environment provided by the organization intended primarily as an alternative to other singles’ bars or club-type environments.
Current law provides for a three-day right of cancellation of dating services contracts and requires a disclosure of this right to appear prominently in the contract. The law also requires certain other disclosures in these contracts and requires the seller to provide a copy of the contract to the buyer. Existing law also provides buyers of these services the ability to cancel if they relocate outside of a certain area.
This bill would apply a different set of requirements to “online dating services,” which would be defined as “any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.” The bill would modernize some provisions to accommodate new technologies and realities, but it would also disrupt some important consumer protections.
CHANGES TO EXISTING LAW
Existing law governs dating service contracts in California. The law defines a “dating service contract” as any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
- an exchange of names, telephone numbers, addresses, and statistics;
- a photograph or video selection process;
- personal introductions provided by the organization at its place of business; or
- a social environment provided by the organization intended primarily as an alternative to other singles’ bars or club-type environments. (Civ. Code Sec. 1694.)
Existing law provides that, in addition to any other right to revoke an offer, the buyer has the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services. Cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer. Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid. Notice of cancellation given by the buyer need not take the particular form as provided in the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the dating service contract. All moneys paid pursuant to any contract for dating services shall be refunded within 10 days of receipt of the notice of cancellation. (Civ. Code Sec. 1694.1.)
Existing law requires a dating service contract to be in writing and to be provided to the buyer at the time the buyer signs the contract. The dating service contract shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the name and address of the dating service operator to which the notice of cancellation is to be mailed; and the date the buyer signed the contract. The contract must contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
You, the buyer, may cancel this agreement, without any penalty or
obligation, at any time prior to midnight of the original contract seller’s
third business day following the date of this contract, excluding Sundays
and holidays. To cancel this agreement, mail or deliver a signed and
dated notice, or send a telegram which states that you, the buyer, are
canceling this agreement, or words of similar effect. This notice shall be
sent to: [Lines provided for the name and address of the seller.]
(Civ. Code Sec. 1694.2.)
Existing law provides that no dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term of any such contract be measured by the life of the buyer. However, the services to be rendered to the buyer under the contract may extend over a period beginning within six months and ending within three years of the date the contract is entered into. (Civ. Code Sec. 1694.2(d).)
Existing law provides that if a dating service contract is not in compliance with Civil Code Section 1694 et seq., the buyer may, at any time, cancel the contract. (Civ. Code Sec. 1694.2(e).)
Existing law provides that if the buyer relocates the buyer’s primary residence farther than 50 miles from the dating service office and is unable to transfer the contract to a comparable facility, the buyer may elect to be relieved of the obligation to make payment for services other than those received prior to that relocation, and if the buyer has prepaid any amount for dating services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer. A buyer who elects to be relieved of further obligation pursuant to this subdivision may be charged a predetermined fee not to exceed one hundred dollars ($100) or, if more than half the life of the contract has expired, a predetermined fee not to exceed fifty dollars ($50). (Civ. Code Sec. 1694.3(b).)
Existing law provides that any contract for dating services which does not comply with Civil Code Section 1694 et seq. is void and unenforceable. Any waiver by the buyer of those provisions is void and unenforceable. Any contract for dating services entered into under willful and fraudulent or misleading information or advertisements of the seller is void and unenforceable. Any buyer injured by a violation of this chapter may bring an action for the recovery of damages in a court of competent jurisdiction. Judgment may be entered for three times the amount at which the actual damages are assessed. Reasonable attorney fees may be awarded to the prevailing party. (Civ. Code Sec. 1694.4.)
This bill would define an “online dating service” as any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.
This bill would provide that for an online dating service, cancellation of the dating service contract occurs when the buyer gives written notice of cancellation by electronic means as specified in the agreement or offer.
This bill would provide that an online dating service contract would need to be an electronic writing made available for viewing online. An online dating service would not be required to provide a buyer a copy of the contract when the contract is available for viewing online and the seller provides a PDF format or retainable digital copy of the contract when a buyer requests it.
This bill would provide that an online dating service contract does not need to contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
You, the buyer, may cancel this agreement, without any penalty or obligation, at any time prior to midnight of the original contract seller’s third business day following the date of this contract, excluding Sundays and holidays. To cancel this agreement, mail or deliver a signed and dated notice, or send a telegram which states that you, the buyer, are canceling this agreement, or words of similar effect. This notice shall be sent to:
_____ (Name of the business that sold you the contract) _____
_____ (Address of the business that sold you the contract) _____ .
The online dating service would instead need to include this statement in a clear and conspicuous manner in close proximity to the first three paragraphs of the contract.
This bill would provide that as long as the name of the online dating service operator appears in the first paragraph of the contract it does not need to contain on the first page, in a type size no smaller than that generally used in the body of the document, the name and address of the dating service operator to which the notice of cancellation is to be mailed, and the date the buyer signed the contract.
This bill would provide that an online dating service contract can have an initial term of up to two years and subsequent terms of up to two years. It would provide that online dating service contracts are not subject to the restriction currently in law that provides that no dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into or measure the term by the life of the buyer. Such online contracts would also not be restricted to have contracts extend over a period beginning within six months and ending within three years of the date the contract is entered into.
This bill would exempt online dating services that are generally available to users on a regional, national, or global basis from the requirements of Civil Code Section 1694.3(b) regarding a buyer’s right to end a contractual relationship when the buyer moves a certain distance from the initial or a comparable facility.
This bill would require online dating services to maintain a reference or link to dating safety awareness information that includes, at a minimum, a list or descriptions of safety measures reasonably aimed at increasing awareness of safer dating practices and a means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
COMMENT
1. Stated need for the bill
According to the author:
The Internet has given rise to technologies and services that have altered the landscape of certain industries, including dating services. According to the Internet Association, one third of relationships today start online. When the California Dating Service Contract Act was passed in 1989, the dating industry landscape looked dramatically different than it does today. The industry at that time mainly consisted of brick-and-mortar businesses. AB 314 simply updates the California Civil Code to reflect the reality of on-line social interaction.
2. The balance between modernization and consumer protection
The sponsors of this bill, Match.com and the Internet Association, urge support for this bill as necessary legislation to modernize the law governing dating services contracts. This bill makes a number of changes to the existing law, but only as it applies to the online versions of dating services. An “online dating service” would be defined as “any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.”
While there are certainly provisions that benefit from amendment to reflect the technological advances that have taken place since these laws were first enacted, some of this bill’s provisions would arguably jeopardize important consumer protections.
- Consumer access to the terms of the contract
Existing law requires a dating service contract (1) to be in writing and (2) to be provided to the consumer at the time the consumer signs the contract. This bill would allow an electronic writing to serve the first requirement. Online contracts have become ubiquitous; allowing for a contract to be electronic is arguably a sensible update to the law. However, this bill would eliminate the requirement that a consumer be provided the contract for online dating services. A consumer would have to formally request a contract before being provided a copy. The online service would only have to have the contract “available for viewing online.” It is unclear what exactly the phrase “available for viewing online” would require. While the clear and conspicuous provision to the consumer of a hyperlink to the contract would suffice, presumably, an online dating service could simply have the contract buried somewhere on its website.
In order to ensure consumers are granted proper access to the terms of an online dating service contract, the following amendment is suggested:
Suggested Amendment
On page 3, line 26, delete “for viewing online” and insert: “through a direct link that is provided in a clear and conspicuous manner on the Web page where the buyer provides consent to the agreement”
- Cancellation
Existing law grants consumers the right to cancel a dating service contract within three days. It provides that cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer. This bill would amend this cancellation process for online dating services. It would provide that cancellation occurs when the consumer gives written notice of cancellation by “electronic means as specified in the agreement or offer.” Given the online nature of the relevant dating services, providing for the ability to cancel online is sensible. However, the language of this bill creates some concerns. What “electronic means” the consumer will be given to cancel their contract would be left to the discretion of the online dating service as the service specifies in the agreement or offer. While the ability to cancel a contract through an email address that is provided or by clicking a prominent and easily identifiable button is reasonable, presumably an online dating service could create a rather burdensome and byzantine process for cancellation in an agreement that is not provided, but only made “available for viewing online.”
In order to ensure consumers are given a clear and easily discoverable means for cancellation, the following amendment is suggested:
Suggested Amendment
On page 3, lines 1-2, delete “electronic means as specified in the agreement or offer.” and insert: “email to an email address provided by the seller. Additional electronic means of cancellation may be provided by the agreement or offer.”
- Disclosing the three-day right of cancellation
Existing law grants consumers the right to cancel a dating service contract within three days. It further requires every dating service contract to contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, that explains to the consumer its right to cancel the agreement, without any penalty or obligation, at any time prior to midnight of the third business day following the date of this contract. The statement also clearly discloses the means by which the consumer can cancel the agreement and the name and address of the dating service.
Pursuant to this bill, these requirements would not apply to online dating services, if they include the statement in the contract in a clear and conspicuous manner “in close proximity to the first three paragraphs of the contract.” Clearly the Legislature has intended this right of cancellation to be clearly disclosed and communicated to consumers in relation to most other provisions of the contract. Therefore, this bill would arguably undermine that policy by allowing the statement to be moved somewhere in the body of the contract. This is exacerbated by the fact that the relevant contract would not even be required to be given to the consumer when the contract is signed.
Writing in opposition, the Office of the San Diego County District Attorney addresses this issue: “There is no reason to significantly erode this important consumer protection when compliance by internet-based dating service providers with the right-to-cancel disclosure requirements contained in existing law is easily accomplished.”
In its letter in opposition, the California Auto Renewal Task Force points to evidence that at least one online dating service has had this statement posted on their check out page near the area where the consumer assents to the agreement. Given the importance of this consumer protection, the following amendment is suggested to ensure consumers are more clearly notified of the three-day right of cancellation:
Suggested Amendment
On page 4, line 9, after “contract” insert: “and in such a manner on the Web page where the buyer provides consent to the agreement, and includes the email address that can be used for cancellation.”
- Name and contact information for the dating service provider
Existing law requires the dating service contract to contain on the first page, in a type size no smaller than that generally used in the body of the document, the name and address of the dating service operator to which the notice of cancellation is to be mailed, and the date the buyer signed the contract. This bill would only require an online dating service to provide its name in the first paragraph of the contract. It would not require any contact information for the provider by which the consumer can cancel. Arguably, the requirement that the dating service contract clearly indicate the contact information through which a consumer can cancel the contract is a critically important consumer protection. This would remove that requirement for online dating services contracts.
Given the amendment above that requires an online dating service provider to provide for cancellation by email, the following amendment is suggested to ensure the relevant email is clearly provided to the consumer:
Suggested Amendment
On page 4, line 16, after “operator” insert: “and the email address that can be used for cancellation”
On page 4, line 17, after “contract” insert: “in a type size no smaller than that generally used in the body of the document”
- Contract period
Existing law provides that no dating service contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term of any such contract be measured by the life of the buyer. Existing law permits the services to be rendered to the buyer under the contract to extend over a period beginning within six months and ending within three years of the date the contract is entered into. This bill would exempt online dating services from these provisions so long as the initial term of the online dating services contract is anywhere up to two years and any subsequent terms are two years or less.
Existing law essentially requires a contract to have a finite endpoint within three years. At that point a contract would need to be renegotiated. Today, many contracts provide for automatic renewal and continuous services. These processes do provide some concerns related to consumer protection. Existing law provides some safeguards. For example, Business & Professions Code Section 17600 et seq. requires certain disclosures to ensure consumers are informed before they enter into such terms. SB 313 (Hertzberg, 2017) is currently making its way through the legislative process. It would further bolster these protections.
Writing in opposition, the Los Angeles County District Attorney’s Office contends: “AB 314 also amends Civil Code Sections 1694.2(d) and (e) to exempt online dating services from the restrictions on locking consumers into long term contracts. These protections are no less important simply because the service is provided online.” If a longer, subsequent term for the services is amenable for both parties, a new contract could be entered into. As written, this bill would possibly allow for an online dating services contract to extend for one month and automatically renew at the end of the term for two years. To address these concerns, the following amendment is suggested:
Suggested Amendment
On page 4, line 26, delete “two years” and insert: “one month”
- Right to cancel upon relocation
Existing law allows a consumer to “elect to be relieved of the obligation” to pay for dating services when the consumer relocates farther than 50 miles away from the dating service office and is unable to transfer to a comparable facility. This bill would remove this right for online dating services that are “generally available to users on a regional, national, or global basis.”
Given the far reaching nature and accessibility of online dating services, this provision seems particularly antiquated. Most consumers likely already live more than 50 miles away from the dating service office. However, some online dating services may only target a particular region. If a consumer moves out of that region, the services may not be as accessible.
3. Opposition
Based on this bill’s weakening of consumer protections, a number of district attorneys’ offices oppose this bill. Many of them indicate that there are ongoing investigations of online dating services violating current law, including the statute that would be amended by this bill. Indeed, the Napa County District Attorney’s Office indicates that its investigation involves serious abuses of consumer rights including violations of the California Dating Service Contract Law.
The Santa Clara County District Attorney’s Office contends this bill “represents a significant retreat from current consumer protection.”
The California Auto Renewal Task Force writes in opposition:
[T]he bill continues to allow online dating services to hide the disclosure of the 3-day cooling off period and right to cancel. Further the bill allows online dating services to circumvent the temporal contract limitation with a “stealth” automatic renewal and imposes the burden of obtaining a copy of the contract upon the consumer. These provisions do not modernize the law but weaken its consumer protections.
It further argues that given the plethora of information provided to consumers, which can be overwhelming, “the law should be specific and precise as to how important notifications must be disclosed.”
The Office of the San Diego County District Attorney writes in opposition that this bill “allows internet-based dating service providers to dispense with the requirement to provide a copy of the dating services contract to the consumer. Instead, internet-based service providers are only obligated to supply a copy of the contract upon consumer request. It is very unlikely the typical consumer would be aware of his or her right to request a copy of the contract.”
The California Auto Renewal Task Force points to evidence of consumer complaints and lawsuits that arise from issues relevant here. For instance, the Better Business Bureau Web site indicates that it has received a “significant number of complaints from consumers that allege Match.com LLC has failed to provide refunds as promised. As well, many consumer complaints allege Match.com LLC has continued to bill them for services although they had cancelled their memberships.” The California Auto Renewal Task Force also points to a number of complaints about unknown automatic renewal terms.
Litigation has been brought against online dating services in recent years, alleging violations of the current law sought to be amended by this bill. In one such class action, consumers alleged that the online service failed to provide notice of the three-day right of cancellation, failed to include the name and address of the online service operator to which cancellation could be sent. (Howell v. Grindr, LLC (S.D. Cal. 2015) 2015 U.S.Dist.LEXIS 167669, at *20-21.) In that case, the court specifically found that although “concerns regarding high pressure sales tactics” might not be applicable to an online dating service, “consumer protection laws to prevent fraud in dating services contracts can have practical application to online transactions or can fit within the statutory scheme.” (Id.) Other class actions have also been filed against online dating service providers based on similar violations of the California Dating Service Contract Law. (See e.g., Graf v. Match.com, LLC (C.D.Cal. 2015) 2015 U.S.Dist.LEXIS 90061, at *1-5.)
Support: None Known
Opposition: California Auto Renewal Task Force; City of Santa Monica; Los Angeles County District Attorney’s Office; Napa County District Attorney’s Office; San Diego County District Attorney’s Office; Santa Clara County District Attorney’s Office; Santa Cruz County District Attorney’s Office; Shasta County District Attorney’s Office
HISTORY
Source: The Internet Association; Match.com
Related Pending Legislation: AB 313 (Hertzberg, 2017) would bolster existing consumer protections relating to continuous services and automatic renewals. This bill is currently in the Assembly Privacy and Consumer Protection Committee.
Prior Legislation:
AB 1323 (Speier, Ch. 359, Stats. 1993) updated the California Dating Service Contract Law.
AB 320 (Speier, Ch. 138, Stats. 1989) created the California Dating Service Contract Law, including the three-day right of cancellation.
Prior Vote:
Assembly Floor (Ayes 74, Noes 4)
Assembly Privacy and Consumer Protection Committee (Ayes 8, Noes 0)
**************
ASSEMBLY THIRD READING
ATR Bill Id:AB 314
Author:(Mullin)
As Amended Ver:May 22, 2017
Majority vote
Committee | Votes | Ayes | Noes |
Privacy | 8-0 | Kiley, Baker, Berman, Calderon, Irwin, Kalra, Obernolte, Reyes |
|
SUMMARY: Revises California's dating service contract law to provide certain alternative requirements for online dating services. Specifically, this bill:
- Defines an online dating service to mean any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.
- Authorizes the cancellation of an online dating service contract when the buyer gives written notice of cancellation by electronic means as specified in the agreement or offer instead of when the buyer gives it.
- Permits an online dating service contract to be made available for viewing online instead of in writing at the time of signature if the company also provides a retainable digital copy of the contract to the buyer upon request.
- Exempts online dating services from making a consumer disclosure of cancellation rights in the contract near to the signature, provided that an online dating service contract provide a similar disclosure in a clear and conspicuous manner in close proximity to the first three paragraphs of the contract.
- Exempts online dating service contracts from the requirement that the contract disclose the name and address of the company for purposes of cancellation and the date of signature, provided that the online dating service company's name appear in the first paragraph of the contract.
- Exempts online dating service contracts from the prohibitions on contract payments extending beyond two years, or contracts in excess of three years or measured by the life of the buyer, provided that the online dating service contract has initial and subsequent terms of two years or less.
- Exempts online dating service contracts from the requirement that buyers who relocate more than 50 miles from the service office and cannot transfer the contract may cancel the contract and pay a cancellation fee as specified, provided that the online dating service is generally available to users on a regional, national, or global basis.
- Requires online dating services to maintain the following features:
- A reference or link to dating safety awareness information that includes a list or description of safety measures reasonably aimed at increasing awareness of safety dating practices; and
- A means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
- Makes other technical or conforming changes.
FISCAL EFFECT: None. This bill has been keyed non-fiscal by the Legislative Counsel.
COMMENTS:
- Purpose of this bill: This bill is intended to modify existing laws regulating dating services to make it easier for online and mobile dating services to comply.
- The Dating Service Contract Act (DSCA): The DSCA originated in 1989 as a result of AB 320 (Speier), Chapter 138, which laid out the rough parameters of today's dating services statute. It was last amended in 1993 by AB 1323 (Speier), Chapter 359.
The DSCA generally applies to any dating service contract that allows the exchange of personal information, pictures or videos. While it was written in the pre-internet days, the language of DSCA does not exclude online or mobile services. The statute generally gives buyers a three-day right of rescission, a right to a copy of the contract, a right to cancel for reasons of death, disability or relocation, and conspicuous disclosures of those rights in the contract. The statute also provides limits on contract length. These protections can be enforced for fraud or noncompliance by voiding of the contract, and a right to legal action for up to three times the damages suffered.
- This bill in practice: As noted above, the author's aim was to modernize DSCA to reflect the reality of online dating services and the significant differences in operation between them. While the bill makes a number of changes, the bill is largely designed to exempt online dating service contracts from certain requirements under existing law, and instead provides alternate requirements that the author feels are more appropriate to an online business model.
The most notable changes include: making the contract viewable online or in retainable form upon request rather than delivering a printed copy after signature; providing for cancellation by email; changing the placement and content of certain disclosures in the contract; changing restrictions on the length of contracts to two years for initial and subsequent contracts; exempting online dating service contracts from consumer cancellation rights related to relocation of the consumer; and requiring online dating service companies to provide information on dating safety and a means to report problems with user behavior, subject to certain limitations on liability.
Despite the fact that the current statute does not mention online services, public prosecutors currently do apply the DSCA to online companies. Supporters of the bill argue that some of the existing requirements of the law are not applicable to how they operate, in part because consumers have less pressure and more control in an electronic commerce environment. In that light, modernization of the statute would therefore be both appropriate and necessary.
Conversely, public prosecutors like the Santa Cruz County District Attorney's Office believe the existing law can be made to work: "we are content to continue to enforce the existing law, which has already been adapted through reasonable enforcement measures to online dating services in a manner to be fair to both consumers and vendors of dating services."
- Arguments in support: The Internet Association writes, "This modernization makes sense given the drastic changes in the dating service industry since the DSCA was enacted in 1989. Whereas consumers faced 'intense pressure tactics by company employees' and limited choices for dating services in the brick-and-mortar era, the modern consumer of dating services enjoys a very different experience. By design, the open architecture of the internet has promoted a competitive ecosystem of online products and services where consumers are squarely in the driver's seat. In contrast to the brick-and-mortar world, consumers are empowered to decide the winners and losers of online companies, which spurs fierce competition among those businesses to earn these potential customers' loyalty."
Match Group Inc. writes: "Assembly Bill 314 retains key protections for consumers from the existing law and ensures they apply to online dating products. However, it would revise the aged and anachronistic provisions that ignore the reality of an online world and online businesses. For example, physical copies of the contract terms would no longer be required to be provided by the dating business, so long as the terms are always accessible on the dating site and a .pdf or other retainable copy could be requested by the consumer. Required font sizes (which can be changed by each user in the browser settings) would also no longer be mandated. Additionally, requirements around the terms and provisions appearing on the "first page" or immediately before the 'signature page' of a contract would be revised given internet contracts are not broken out into pages. Finally, the ability to cancel after a user moves his or her residence is removed because online dating services operate and are accessible nationally (or internationally), and can easily be used in virtually any location in California."
- Arguments in opposition: The Santa Cruz County District Attorney's Office, on behalf of the California Auto Renewal Taskforce (CART), writes: "We…remain firmly opposed to the bill…while the amendments represent some positive changes, the bill as amended still falls substantially short of gaining our support… conceptually many of the amendments are still drafted in such a way to suggest that the online dating services need to be given an exception from the Dating Service Contract Law. This is not so and online dating services can comply with the law easily and effectively as it is written."
The San Diego County District Attorney's Office writes, "While it is generally recognized that there are some practical issues faced by internet-based dating service providers in applying the Dating Service Law to online and mobile dating services, AB 314, which exempts internet-based dating service providers from these laws, is not the solution. Instead, minor modifications of the existing Dating Service Law could harmonize the law with current technologies and ensure that consumers continue to enjoy the important protections provided by current law."
Analysis Prepared by: Hank Dempsey / P. & C.P. / (916) 319-2200 FN: 0000427
ASSEMBLY THIRD READING
ATR Bill Id:AB 314
Author:(Mullin)
As Amended Ver:April 27, 2017
Majority vote
Committee | Votes | Ayes | Noes |
Privacy | 8-0 | Kiley, Baker, Berman, Calderon, Irwin, Kalra, Obernolte, Reyes |
SUMMARY: Revises California's dating service contract law to provide certain alternative requirements for online dating services. Specifically, this bill:
- Defines an online dating service to mean any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an internet Web site or a mobile application.
- Authorizes the cancellation of an online dating service contract when the service receives a cancellation email from the buyer, instead of when the buyer gives it.
- Permits an online dating service contract to be made available for viewing online instead of in writing at the time of signature if the company also provides a retainable digital copy of the contract to the buyer upon request.
- Exempts online dating services from making a consumer disclosure of cancellation rights in the contract near to the signature, provided that an online dating service contract provide a similar disclosure in a clear and conspicuous manner in close proximity to the first three paragraphs of the contract.
- Exempts online dating service contracts from the requirement that the contract disclose the name and address of the company for purposes of cancellation and the date of signature, provided that the online dating service company's name appear in the first paragraph of the contract.
- Exempts online dating service contracts from the prohibitions on contract payments extending beyond two years, or contracts in excess of three years or measured by the life of the buyer, provided that the online dating service contract has initial and subsequent terms of two years or less.
- Exempts online dating service contracts from the requirement that buyers who relocate more than 50 miles from the service office and cannot transfer the contract may cancel the contract and pay a cancellation fee as specified, provided that the online dating service is generally available to users on a regional, national, or global basis.
- Requires online dating services to maintain the following features, provided that liability shall not attach if the service attempts to comply in good faith and only technical or procedural noncompliance exists:
- A reference or link to dating safety awareness information that includes a list or description of safety measures reasonably aimed at increasing awareness of safety dating practices; and
- A means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
- Makes other technical or conforming changes.
FISCAL EFFECT: None. This bill has been keyed non-fiscal by the Legislative Counsel.
COMMENTS:
- Purpose of this bill: This bill is intended to modify existing laws regulating dating services to make it easier for online and mobile dating services to comply.
- The Dating Service Contract Act (DSCA): The DSCA originated in 1989 as a result of AB 320 (Speier), Chapter 138, which laid out the rough parameters of today's dating services statute. It was last amended in 1993 by AB 1323 (Speier), Chapter 359.
The DSCA generally applies to any dating service contract that allows the exchange of personal information, pictures or videos. While it was written in the pre-internet days, the language of DSCA does not exclude online or mobile services. The statute generally gives buyers a three-day right of rescission, a right to a copy of the contract, a right to cancel for reasons of death, disability or relocation, and conspicuous disclosures of those rights in the contract. The statute also provides limits on contract length. These protections can be enforced for fraud or noncompliance by voiding of the contract, and a right to legal action for up to three times the damages suffered.
- This bill in practice: As noted above, the author's aim was to modernize DSCA to reflect the reality of online dating services and the significant differences in operation between them. While the bill makes a number of changes, the bill is largely designed to exempt online dating service contracts from certain requirements under existing law, and instead provides alternate requirements that the author feels are more appropriate to an online business model.
The most notable changes include: making the contract viewable online or in retainable form upon request rather than delivering a printed copy after signature; providing for cancellation by email; changing the placement and content of certain disclosures in the contract; changing restrictions on the length of contracts to two years for initial and subsequent contracts; exempting online dating service contracts from consumer cancellation rights related to relocation of the consumer; and requiring online dating service companies to provide information on dating safety and a means to report problems with user behavior, subject to certain limitations on liability.
Despite the fact that the current statute does not mention online services, public prosecutors currently do apply the DSCA to online companies. Supporters of the bill argue that some of the existing requirements of the law are not applicable to how they operate, in part because consumers have less pressure and more control in an electronic commerce environment. In that light, modernization of the statute would therefore be both appropriate and necessary.
Conversely, public prosecutors like the Santa Cruz County District Attorney's Office believe the existing law can be made to work: "we are content to continue to enforce the existing law, which has already been adapted through reasonable enforcement measures to online dating services in a manner to be fair to both consumers and vendors of dating services."
- Arguments in support: The Internet Association writes, "This modernization makes sense given the drastic changes in the dating service industry since the DSCA was enacted in 1989. Whereas consumers faced 'intense pressure tactics by company employees' and limited choices for dating services in the brick-and-mortar era, the modern consumer of dating services enjoys a very different experience. By design, the open architecture of the internet has promoted a competitive ecosystem of online products and services where consumers are squarely in the driver's seat. In contrast to the brick-and-mortar world, consumers are empowered to decide the winners and losers of online companies, which spurs fierce competition among those businesses to earn these potential customers' loyalty."
Match Group Inc. writes: "Assembly Bill 314 retains key protections for consumers from the existing law and ensures they apply to online dating products. However, it would revise the aged and anachronistic provisions that ignore the reality of an online world and online businesses. For example, physical copies of the contract terms would no longer be required to be provided by the dating business, so long as the terms are always accessible on the dating site and a .pdf or other retainable copy could be requested by the consumer. Required font sizes (which can be changed by each user in the browser settings) would also no longer be mandated. Additionally, requirements around the terms and provisions appearing on the "first page" or immediately before the 'signature page' of a contract would be revised given internet contracts are not broken out into pages. Finally, the ability to cancel after a user moves his or her residence is removed because online dating services operate and are accessible nationally (or internationally), and can easily be used in virtually any location in California."
- Arguments in opposition: The Santa Cruz County District Attorney's Office, on behalf of the California Auto Renewal Taskforce (CART), writes: "We…remain firmly opposed to the bill…while the amendments represent some positive changes, the bill as amended still falls substantially short of gaining our support… conceptually many of the amendments are still drafted in such a way to suggest that the online dating services need to be given an exception from the Dating Service Contract Law. This is not so and online dating services can comply with the law easily and effectively as it is written."
The San Diego County District Attorney's Office writes, "While it is generally recognized that there are some practical issues faced by internet-based dating service providers in applying the Dating Service Law to online and mobile dating services, AB 314, which exempts internet-based dating service providers from these laws, is not the solution. Instead, minor modifications of the existing Dating Service Law could harmonize the law with current technologies and ensure that consumers continue to enjoy the important protections provided by current law."
Analysis Prepared by: Hank Dempsey / P. & C.P. / (916) 319-2200 FN: 0000251
Date of Hearing: May 2, 2017
ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION
Ed Chau, Chair
ABPCA Bill Id:AB 314 (
Author:Mullin) – As Amended Ver:April 27, 2017
SUBJECT: Dating service contracts: online services
SUMMARY: Revises California's dating service contract law to provide certain alternative requirements for online dating services. Specifically, this bill:
- Defines an online dating service to mean any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an internet website or a mobile application.
- Authorizes the cancellation of an online dating service contract when the service receives a cancellation email from the buyer, instead of when the buyer gives it.
- Permits an online dating service contract to be made available for viewing online instead of in writing at the time of signature if the company also provides a retainable digital copy of the contract to the buyer upon request.
- Exempts online dating services from making a consumer disclosure of cancellation rights in the contract near to the signature, provided that an online dating service contract provide a similar disclosure in a clear and conspicuous manner in close proximity to the first three paragraphs of the contract.
- Exempts online dating service contracts from the requirement that the contract disclose the name and address of the company for purposes of cancellation and the date of signature, provided that the online dating service company's name appear in the first paragraph of the contract.
- Exempts online dating service contracts from the prohibitions on contract payments extending beyond two years, or contracts in excess of three years or measured by the life of the buyer, provided that the online dating service contract has initial and subsequent terms of two years or less.
- Exempts online dating service contracts from the requirement that buyers who relocate more than 50 miles from the service office and cannot transfer the contract may cancel the contract and pay a cancellation fee as specified, provided that the online dating service is generally available to users on a regional, national, or global basis.
- Requires online dating services to maintain the following features, provided that liability shall not attach if the service attempts to comply in good faith and only technical or procedural noncompliance exists:
- A reference or link to dating safety awareness information that includes a list or description of safety measures reasonably aimed at increasing awareness of safety dating practices; and
- A means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
- Makes other technical or conforming changes.
EXISTING LAW:
- Enacts the Dating Service Contract Act (DSCA), which generally regulates dating service contracts. (Civil Code Section (CC) 1694, et seq.)
- Defines a "dating service contract" as any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means: an exchange of names, telephone numbers, addresses, and statistics; a photograph or video selection process; personal introductions provided by the organization at its place of business; or a social environment provided by the organization intended primarily as an alternative to other singles’ bars or club-type environments. (CC 1694(a))
- Gives a buyer the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services. (CC 1694.1)
- Requires a dating service contract to be in writing and requires that a copy of the contract be provided to the buyer at the time he or she signs the contract. (CC 1694.2(a))
- Requires that a dating service contract contain a conspicuous statement, placed as specified, regarding the right of the buyer to cancel the agreement. (CC 1694.2(b))
- Prohibits a dating service contract from spanning a period in excess of two years, or the life of the buyer, as specified. (CC 1694.2(d))
- Requires a dating service contract to permit the cancellation of a dating service contract due to the buyer's death or disability. (CC 1694.3(a))
- Requires a dating service contract to permit cancellation of a contract if the buyer relocates to a place more than 50 miles from the dating service office and there is no comparable facility in the new location, in which case the buyer may be charged a predetermined fee, as specified. (CC 1694.3(b))
- Declares a dating service contract that is not compliant with the DSCA, or entered into under willful and fraudulent or misleading information or advertisements are void and unenforceable. (CC 1694.4(a)-(b))
- Authorizes a buyer injured by a violation of DSCA to bring an action for recovery of damages, which may include a judgment for up to three times actual damages plus attorney fees, as well as partial reimbursement, as specified. (CC 1694.4(c)-(d))
FISCAL EFFECT: None. This bill has been keyed nonfiscal by the Legislative Counsel.
COMMENTS:
- Purpose of this bill: This bill is intended to modify existing laws regulating dating services to make it easier for online and mobile dating services to comply.
- Author's statement: According to the author, "When the California Dating Service Contract Act (DSCA) was passed in 1989, the dating industry landscape looked dramatically different than it does today. The industry at that time mainly consisted of brick-and-mortar businesses that employed high-pressure sales tactics to sign up vulnerable consumers."
"Frequently, these services employed aggressive in-person salespeople and locked customers into long-term contracts with large price tags. In addition, dating services were local, required customers to go into stores, had limited pools of members, and generally prevented prospective members from learning anything about existing members before signing up. As noted by Attorney General John Van de Kamp in support of the proposed DSCA, its purpose was in part to protect people who were under the pressure of an in-person sales pitch.
"With the advent of the Internet and mobile applications, contracts are shorter-term, lower-priced, and entered into online, with no high-pressure sales tactics. Online dating sites and applications encourage prospective customers to view members’ profiles before signing up, with payments required only to engage in communications with other members—indeed, many services even allow full use of the sites/apps without payment, charging only for certain premium features.
"AB 314 simply seeks to modernize the application of the Dating Services Contract Act to reflect the reality that online dating service providers are just like other internet service providers that do business on-line, which is done in an entirely different way than how dating services were provided in 1989."
- The dating service industry: Matchmaking as social practice has existed for centuries, but it has become big business in the modern era. According to Marketdata Enterprises, the dating services industry in the United States was estimated to be worth $2.5 billion in 2015 and forecast to grow 5.1% per year to $3.2 billion by 2020.
Marketdata Enterprises' June 2016 article describes the industry this way: "The industry consists of much more than just dating websites, although these get the bulk of the media attention and account for 70% of the industry’s revenues. America’s 124 million singles are using mobile apps more often, but traditional services like matchmakers and dating coaches are doing well also. The Dating Services business is a fragmented but growing one, with both small entrepreneurial companies and billion corporations. There is no unifying trade association to police ethics and marketing practices. Some services are free, while others cost up to $250,000 (elite matchmakers). It’s still ‘let the buyer beware’. The Internet and dating reality TV shows…have brought these services into the mainstream and taken the stigma out of the profession. There appears to be a service and price point for every type of lonely single person, in every age group."
As noted above, brick and mortar dating services do still exist, but they have been overtaken by the popularity of online dating. In fact, a 2016 Pew Research Center Poll found that fully 15% of American adults have used an online or mobile dating site. However, the statute that regulates dating services has not been updated since 1993 – long before online dating was invented. - The Dating Service Contract Act: The DSCA originated in 1989 as a result of AB 320 (Speier), which laid out the rough parameters of today's dating services statute. It was last amended in 1993 by AB 1323 (Speier).
The DSCA generally applies to any dating service contract that allows the exchange of personal information, pictures or videos. While it was written in the pre-internet days, the language of DSCA does not exclude online or mobile services. The statute generally gives buyers a three-day right of rescission, a right to a copy of the contract, a right to cancel for reasons of death, disability or relocation, and conspicuous disclosures of those rights in the contract. The statute also provides limits on contract length. These protections can be enforced for fraud or noncompliance by voiding of the contract, and a right to legal action for up to three times the damages suffered.
The DSCA also falls within the ambit of interest of a coalition of consumer-orientated law enforcement groups focused on larger issues of e-commerce: the California Auto Renewal Task Force (CART). CART consists of the District Attorney Offices of San Diego, Los Angeles, Santa Cruz and Santa Clara, along with the City Attorney of Santa Monica.
- This bill in practice: As noted above, the author's aim was to modernize DSCA to reflect the existence of online dating services and recognize the significant differences in operation between them. While the bill makes a number of changes, the bill is largely designed to exempt online dating service contracts from certain requirements under existing law, and instead provides alternate requirements that the author feels are more appropriate to an online business model.
The most notable changes include: making the contract viewable online or in retainable form upon request rather than delivering a printed copy after signature; providing for cancellation by email; changing the placement and content of certain disclosures in the contract; changing restrictions on the length of contracts to two years for initial and subsequent contracts; exempting online dating service contracts from consumer cancellation rights related to relocation of the consumer; and requiring online dating service companies to provide information on dating safety and a means to report problems with user behavior, subject to certain limitations on liability.
Despite the fact that the current statute does not mention online services and obviously did not contemplate the rise of e-commerce, public prosecutors currently do apply the DSCA to online companies. Supporters of the bill argue that some of the existing requirements of the law are simply not applicable to how they operate, in part because consumers have less pressure and more control in an electronic commerce environment. In that light, modernization of the statute would therefore be both appropriate and necessary.
Conversely, public prosecutors like the Santa Cruz County District Attorney's Office believe the existing law can be made to work: "we are content to continue to enforce the existing law, which has already been adapted through reasonable enforcement measures to online dating services in a manner to be fair to both consumers and vendors of dating services." - Remaining points of contention: While the provisions of this bill have been under discussion between supporters, opponents and interested parties for several weeks, resulting in two sets of amendments, there remain some unresolved issues. The primary points of disagreement between the author and opponents, as described by the Santa Cruz County District Attorney's Office on behalf of CART, are as follows:
- Effectiveness of email cancellation. The bill currently permits cancellation of an online dating service contract by email, but that cancellation is treated as effective upon receipt – rather than upon sending by the consumer, which is the case for other modes like regular mail, telegram or personal delivery. Opponents contend that email should be effective upon deposit. Further, opponents argue cancellation should be more broadly enabled by "electronic means", which would include website buttons or other interfaces.
- Provision of the contract. The bill currently requires an online dating service company to make the contract available for viewing online, or in a retainable form upon request. Opponents contrast this practice with the existing requirement for a printed copy of the contract at signature, and insist that all online dating service buyers should receive pdf-formatted contracts at signing because most consumers will not make the request and will be more vulnerable to modifications of contract terms by the company later.
- Contract cancellation disclosure. The bill currently places a disclosure of the right of rescission "in close proximity to the first three paragraphs of the contract" instead of close proximity to the signature line as in current law. Opponents believe this will make the disclosure less likely to be viewed, and should instead remain in close proximity to the signature or consent.
- Contract limitation. The bill currently exempts online dating services from existing restrictions on contract length (no payment periods in excess of two years, no contract terms measured by the life of the buyer, no extended contracts beyond three years) if initial or subsequent online contracts are no longer than two years each. Opponents argue that this exemption is unjustified. Instead, they argue for a new right of reasonable cancellation, which would allow the buyer to pay a limited financial penalty (such as the discount received by the consumer on a long-term contract) in order to leave that contract.
- Relocation exemption. The bill currently exempts online dating services from the right of a consumer to cancel the contract if they move more than 50 miles away from the service facility and can't transfer to a comparable facility. Opponents contend that this exemption is unwarranted, arguing that consumers who move "will likely experience sufficiently changed circumstances as to make membership in the dating service – whether brick-and-mortar or online – no longer useful."
- Good-faith exceptions for new protections. The bill creates two new protections specific to online dating services: requirements for a link to dating safety awareness information, and a means to report issues or concerns about the behavior of other users. However, any legal liability under the existing statute for those two requirements will not attach if the service attempts to comply in good faith and any noncompliance is technical or procedural. While supportive of the protections, opponents argue that the benefits are "essentially unenforceable" and an "intrusion of a dangerous precedent".
- Arguments in support: The Internet Association writes "AB 314 updates California’s Dating Service Contracts Act of 1989 (DSCA) to account for the advent of internet-based dating services. The bill accomplishes this by applying key consumer protections from the original law to modern dating services in a way that makes sense for today’s internet companies. The bill, as proposed to be amended, reflects thoughtful changes reached as the result of extensive conversations with your Committee and key stakeholders…"
"This modernization makes sense given the drastic changes in the dating service industry since the DSCA was enacted in 1989. Whereas consumers faced 'intense pressure tactics by company employees' and limited choices for dating services in the brick-and-mortar era, the modern consumer of dating services enjoys a very different experience. By design, the open architecture of the internet has promoted a competitive ecosystem of online products and services where consumers are squarely in the driver’s seat. In contrast to the brick-and-mortar world, consumers are empowered to decide the winners and losers of online companies, which spurs fierce competition among those businesses to earn these potential customers' loyalty.
"AB 314 would modernize the DSCA by acknowledging the existence of online dating services and updating current statute to reflect the way these businesses interact with consumers in the digital world."
Match Group Inc. writes: "Assembly Bill 314 retains key protections for consumers from the existing law and ensures they apply to online dating products. For example, Assembly Bill 314 requires that users be permitted to view the contract terms before purchase and cancel the contract by providing notice as set out in the existing Dating Service Contract Act, including for a full refund if done within the first three days."
"However, it would revise the aged and anachronistic provisions that ignore the reality of an online world and online businesses. For example, physical copies of the contract terms would no longer be required to be provided by the dating business, so long as the terms are always accessible on the dating site and a .pdf or other retainable copy could be requested by the consumer. Required font sizes (which can be changed by each user in the browser settings) would also no longer be mandated. Additionally, requirements around the terms and provisions appearing on the “first page” or immediately before the “signature page” of a contract would be revised given internet contracts are not broken out into pages. Finally, the ability to cancel after a user moves his or her residence is removed because online dating services operate and are accessible nationally (or internationally), and can easily be used in virtually any location in California."
- Arguments in opposition: The Santa Cruz County District Attorney's Office, on behalf of CART, writes: "We have reviewed the amended version of AB 314, and remain firmly opposed to the bill…while the amendments represent some positive changes, the bill as amended still falls substantially short of gaining our support… conceptually many of the amendments are still drafted in such a way to suggest that the online dating services need to be given an exception from the Dating Service Contract Law. This is not so and online dating services can comply with the law easily and effectively as it is written." The major specific objections of the CART members are summarized in 6) above.
The San Diego County District Attorney's Office writes, "While it is generally recognized that there are some practical issues faced by internet-based dating service providers in applying the Dating Service Law to online and mobile dating services, AB 314, which exempts internet-based dating service providers from these laws, is not the solution. Instead, minor modifications of the existing Dating Service Law could harmonize the law with current technologies and ensure that consumers continue to enjoy the important protections provided by current law."
- Previous legislation: AB 1323 (Speier), Chapter 359, Statutes of 1993, permitted a dating service and weight loss contract buyer to give written notice of cancellation by any form of mail, by telegram, or by delivery, and also allowed a buyer to cancel contracts governed by these provisions without penalty or obligation and require that language to this effect appear on the contracts.
AB 320 (Speier), Chapter 138, Statutes of 1989, permitted the cancellation of dating service and weight loss contracts until midnight of the third business day after the buyer signs the agreement or offer to purchase, while requiring contracts to be in writing and a copy delivered to the buyer at inception, requiring disclosure of specified information, limiting the length of such contracts, and specifying enforcement provisions.
REGISTERED SUPPORT / OPPOSITION:
Support
The Internet Association
Match Group, Inc.
Opposition
City of Santa Monica
Los Angeles County District Attorney's Office
Napa County District Attorney’s Office
San Diego County District Attorney's Office
Santa Clara County District Attorney’s Office
Santa Cruz County District Attorney's Office
Shasta County District Attorney's Office
Analysis Prepared by: Hank Dempsey / P. & C.P. / (916) 319-2200
Date of Hearing: March 28, 2017
ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION
Ed Chau, Chair
ABPCA Bill Id:AB 314 (
Author:Mullin) – As Amended Ver:March 22, 2017
SUBJECT: Dating service contracts: online services
SUMMARY: Modernizes California’s Dating Service Contract Act (DSCA) to address online dating and social referral services and requirements specific to that industry. Specifically, this bill:
- Specifies that the DSCA does not apply to a dating, matrimonial, or social referral service that is offered primarily online, as long as the service provides the following consumer protections:
- The buyer can view the contract terms, including the notice of right to cancel and death and disability cancellation provisions, before entering into the contract.
- The buyer can cancel the contract until midnight of the third business day after the buyer signed the contract, as specified, without penalty, and with a refund of all money paid within 10 days.
- The buyer can cancel the contract by written notice sent by mail, telegram, personal delivery or email.
- The length of the initial contract, excluding renewals and extensions, cannot exceed two years.
- The buyer has the ability to hide his or her online profile from public display and a user’s choice to hide his or her profile must be effectuated within three days.
- The service provides consumers with information on dating safety, including information on measures reasonably aimed at increasing awareness of safe dating practices.
- The service provides consumers with a method to report issues or concerns relating to the behavior of other users of the service.
- Specifies that as long as an online dating service attempts to comply with the above provisions in good faith, any technical or procedural non-compliance will not disqualify the person or organization as an online dating service under the bill.
EXISTING LAW:
- Pursuant to the DSCA, defines “dating service contract” as a contract with an organization offering dating, matrimonial, or social referral services by means of:
- The exchange of names, contact information, and statistics;
- A photo or video selection process;
- Personal introductions; or
- Social environments intended as an alternative to singles’ bars or clubs.
(Civil Code (Civ. Code) Section 1694) - Gives a consumer who signs a dating service contract the right to cancel – by mail, telegram, or delivery – until midnight of the third business day after signing the contract and specifies that the cancellation is effective when deposited in the mail. (Civ. Code 1694.1)
- Requires a dating service to give a full refund to the consumer within 10 days of receiving a timely cancellation. (Civ. Code 1694.1)
- Gives the consumer the right to call the dating service by phone to stop payment of a check or credit card charge within the three-day cancellation period, but still requires the consumer to send a timely written notice of cancellation. (Civ. Code 1694.1)
- Requires a dating service contract to be in writing and a copy of the contract to be provided to the consumer at the time of signing. (Civ. Code 1694.2)
- Requires a dating service contract to include a statutory cancellation notice in “10-point boldface type” near the signature line, and requires a dating service contract to include the contact information for the dating service “in a type size no smaller than that generally used in the body of the document.” (Civ. Code 1694.2)
- Prohibits a dating service contract from requiring payments or financing for longer than two years, and requires dating services under the contract to begin within six months and to end within three years. (Civ. Code 1694.2)
- Gives a consumer (or the consumer’s estate) the right to cancel because of disability or death, as specified. (Civ. Code 1694.3)
- Gives a consumer the right to end the contract, as specified, if the consumer moves more than 50 miles away from the dating service office. (Civ. Code 1694.3)
- Specifies that any dating service contract that does not comply with the above requirements –
or that was entered into as the result of willful and fraudulent or misleading information or advertisements of the seller – is void and unenforceable. (Civ. Code 1694.4)
- Permits an injured consumer to recover damages in a civil action and permits the award of three times the amount of damages as well as attorney fees for a prevailing party. (Civ. Code 1694.4)
FISCAL EFFECT: None. This bill is keyed nonfiscal by the Legislative Counsel.
COMMENTS:
- Purpose of this bill: This bill is intended to update California dating service contract law to reflect the online nature of well-known computer-based dating services today, such as Match.com and eHarmony. This measure is author-sponsored.
- Author’s statement: According to the author's office, this bill “would bring the existing DSCA into line with the current technological environment while protecting California consumers. AB 314 would modernize the DSCA by expressly acknowledging the existence of Internet Dating Services and applying a thoughtful framework of regulation to them, while maintaining the more important protections consumers currently have.”
- Facts about online dating: According to a Pew Research Center study from 2015, 15% of adults in the United States report they have used online dating sites or mobile dating apps, and 59% of Americans believe online dating is a good way to meet people. According to Pew, while 88% of people say they met their partner offline, 5% of Americans who are in a marriage or committed relationship say they met their significant other online. The use of online dating services is growing rapidly, particularly among young adults. The share of 18- to 24-year-olds who use online dating has roughly tripled from 10% in 2013 to 27% today.
- California Dating Service Contract Act (DSCA): The Legislature passed the DSCA in 1989 in response to aggressive sales tactics being used at the time by brick and mortar dating and escort services. Since 1989, communications have changed dramatically with the advent of the Internet, email, and the ubiquitous use of cell phones and mobile apps. Dating and social referral services today – with the exception of a few brick and mortar escort services – are largely conducted online.
Major providers, such as Match.com and eHarmony typically offer initial free trials followed by options for consumers to choose a three-month, six-month or one-year subscription, which automatically renews unless canceled. Consumers have the right to cancel within three days of signing up for a subscription, as required by law in California. The entire transaction is conducted online, so existing statutory provisions specifying the size of the font type to be used in paper contracts, delivery of a paper contract to the consumer, and the delivery of a cancellation notice in person or by telegram are now outdated and inapplicable. Consumers who use online dating services subscribe electronically and have the ability to view their subscription contract at any time on their app or the service website.
- Applying DSCA to the online dating service industry: While this bill intends to resolve difficulties in applying the DSCA to online dating services, the Santa Clara County and Santa Cruz County district attorneys' offices sent letters of opposition to the introduced version of the bill stating that the bill would, in part, “eliminate the valuable right of the consumer to be clearly advised of the consumer’s right to cancel within the three-day cooling off period. The current law requires the disclosure to be front and center in bold type just prior to payment and checkout.”
However, the bill was recently amended to address a broad array of concerns. In its current form, AB 314 would now require online dating services to ensure the buyer can view the contract terms, including the right to cancel, before entering into the contract. It also carries over other applicable consumer protections in current law as well. For example, the bill now applies the current law three-day right to cancel process with the existing requirement for a full refund within in 10 days, and adds the requirement for the consumer to be able to view the contract before signing, imposes a two-year maximum contract length, and adds the death and disability cancellation provisions. In addition, the bill allows consumers to cancel their contract by email, requires online dating services to give consumers dating safety awareness information, and requires services to set up a process for consumers to report problems or issues with other people using the service and an ability to hide their own online profile if they choose.
The provisions that this bill does not carry over are generally those provisions that do not appear to easily apply to the online dating service world, including the right to cancel if a consumer moves 50 miles away from the “dating service office,” the requirement that certain disclosures be in “10-point” type, and the requirement to give the consumer a copy of their contract. In the online dating service world, contracts are viewed and signed on a computer or mobile app, so display font sizes depend on the consumer’s computer or phone settings, and once a consumer signs up for an online dating service, the terms of service are viewable anytime on the service website or app.
Because this bill does not repeal the DSCA, but rather exempts online dating services from DSCA if they comply with the consumer protections laid out in the bill (and discussed above), the bill contains language to ensure that an online dating services company does not become subject to the brick-and-mortar provisions of the DSCA by virtue of a “technical or procedural noncompliance” with the bill as long as the service was attempting in good faith to comply with the provisions of the bill.
- Arguments in support: According to the Internet Association, “AB 314 would modernize the DSCA by expressly acknowledging the existence of internet dating services and applying a thoughtful framework of regulation to them…Whereas consumers faced 'intense pressure tactics by company employees' and limited choices for dating services in the brick-and-mortar era, the modern consumer of dating services enjoys a very different experience. By design, the open architecture of the internet has promoted a competitive ecosystem of online products and services where consumers are squarely in the driver’s seat.”
- Arguments in opposition: The Office of the District Attorney for Santa Clara County states in opposition to a prior version of this bill that “the law as it is currently written has been fairly applied to online dating services by the courts and consumer prosecutors. My office along with two multijurisdictional law enforcement task forces [has] confronted no difficulty applying this and similar consumer protection laws to online vendors.”
- Prior Legislation: AB 1323 (Speier), Chapter 359, Statutes of 1993, updated the DSCA by allowing consumers to cancel a dating service or weight loss contract by mail, telegram, or direct delivery and required contracts to specify that there was no penalty for cancelling.
AB 320 (Speier), Chapter 138, Statutes of 1989, created the DSCA, giving consumers a 72-hour right to cancel a dating service contract or a weight loss contract, and required those contracts to be in writing and contain information about how to cancel. AB 320 also specified that contract financing for dating or weight loss services could not be stretched over more than two years.
REGISTERED SUPPORT / OPPOSITION:
Support
Internet Association
Match Group, Inc.
Opposition
City of Santa Monica
Santa Cruz County District Attorney’s Office
Santa Clara County District Attorney’s Office
Analysis Prepared by: Jennie Bretschneider / P. & C.P. /
Discussed in Hearing
1MIN
Assembly Floor
2MIN
Senate Floor
6MIN
Senate Standing Committee on Judiciary
27MIN
Senate Standing Committee on Judiciary
1MIN
Assembly Floor
1MIN
Assembly Floor
46MIN
Assembly Standing Committee on Privacy and Consumer Protection
Bill Author
Bill Co-Author(s):