A Tale of Two Statutes: ROSCA as Written, and ROSCA as Enforced

– Response Magazine

Enacted in 2010, the Restore Online Shoppers’ Confidence Act requires online retailers to clearly and conspicuously disclose the terms of an online negative option transaction before obtaining the consumer’s billing information, obtain express informed consent before charging the consumer, and provide a simple mechanism to stop the charges. From a seemingly simple set of requirements from Congress, the enforcement of the statute has raised significant issues for online sellers as to how these obligations may be satisfied. A recent Federal Trade Commission case involving an online marketer of nutritional supplements provides a timely opportunity to survey the online negative-option regulatory landscape.

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