HB1011 TN failed

AN ACT to amend Tennessee Code Annotated, Title 45 and Title 47, Chapter 18, relative to online payment systems.

Consumer Protection privacy

Plain-English summary

1. **ONE-SENTENCE SUMMARY:** This bill aimed to require online payment systems to notify users in writing before freezing their funds.

2. **KEY REQUIREMENTS:**
   - Online payment systems must provide written notice to users before freezing their funds.

3. **DEADLINES:** 
   - The bill did not pass, so there are no effective dates or compliance deadlines.

4. **PENALTIES:** 
   - If it had passed, violating this requirement would have been considered an unfair or deceptive act under the Tennessee Consumer Protection Act, potentially leading to legal action.

5. **SMB IMPACT:** Since the bill failed, small businesses using online payment systems are not currently required to provide written notice before freezing funds, allowing them to continue their operations without this additional compliance burden.

Source description

As introduced, prohibits an online payment system from freezing the funds of a user without first providing the user with a written notice of the online payment system's intent to freeze the user's funds; designates a violation as an unfair or deceptive act or practice pursuant to the Tennessee Consumer Protection Act of 1977. - Amends TCA Title 45 and Title 47, Chapter 18.

Not legal advice. Summaries are generated by AI from publicly available bill text and may contain errors or omissions. Always consult counsel before making compliance decisions.