An Act Prohibiting Certain Business Conduct Regarding Storage Of Consumers' Credit Card And Debit Card Information.
Summary
HB 5744 would prohibit businesses from requiring consumers to authorize storage of their credit card or debit card information as a condition of entering into or amending a consumer agreement, including for automatic renewal provisions and continuous services provisions. The bill is aimed at limiting how businesses handle payment card data in subscription-style or recurring-service arrangements, while still allowing temporary storage of card information when a consumer voluntarily provides it for a specific payment and the information is retained only long enough to process that payment.
The bill defines the relevant terms by reference to existing Connecticut statutes governing consumer agreements, automatic renewals, continuous services, and card-related offenses. It also authorizes the Commissioner of Consumer Protection to adopt implementing regulations. Any violation would be treated as an unfair or deceptive trade practice under the state’s consumer protection law, giving the provision enforcement weight through Connecticut’s unfair trade practices framework.
Impact
If enacted, the bill would add a new consumer protection rule to Connecticut law effective October 1, 2025, restricting business practices related to storing payment card information. It would affect businesses that use recurring billing, subscriptions, memberships, or other consumer agreements that involve automatic renewal or continuous service terms, and it would create potential liability under the Connecticut Unfair Trade Practices Act for noncompliance. The measure would not ban temporary card storage for a specific transaction, but it would limit retention beyond what is necessary to process the payment.
Sentiment
The available record shows limited formal debate and no recorded yea or nay vote on the draft, so there is no strong evidence of organized opposition or support in the materials provided. The bill’s purpose and co-sponsorship suggest a consumer-protection orientation, with the apparent policy goal of reducing pressure on consumers to keep payment credentials on file. Overall, the tone of the bill is protective of consumer choice and privacy, and the absence of committee transcript discussion makes the broader sentiment difficult to gauge beyond that.
Contention
The main point of contention is likely to be the balance between consumer privacy and business convenience in recurring-payment relationships. Businesses that rely on stored payment methods for subscriptions, renewals, or continuous services may view the restriction as burdensome or operationally disruptive, while consumer advocates would likely support the bill as a safeguard against compelled card-on-file arrangements. Another possible issue is how broadly the prohibition applies to different billing models and what counts as temporary storage necessary to process a payment, which may require regulatory clarification.