FTC Brings First Case Under Federal Negative Option Law
What's Making News?
The Federal Trade Commission (FTC) recently brought its first
case under the Restore Online Shoppers' Confidence Act (ROSCA),
a 2010 federal law that prohibits online sellers from charging
consumers in an Internet transaction unless the seller has clearly
disclosed all material terms of the transaction and obtained
consumers' express informed consent.
The Facts
In a complaint filed in US District Court in Nevada, the FTC
alleged that a company called Health Formulas, LLC, as well as a
number of related entities and individuals, deceptively marketed
and sold dietary supplements, weight loss products, and various
other products under brand names such as "Pure Green Coffee
Bean Plus," "Pure Garcinia Cambogia Extract," and
"Black Bull." The defendants' marketing materials
claimed that their weight loss products would "burn fat
without diet or exercise" and help users "shed pounds
fast."
