Negative Options: FTC Alleges ROSCA Violations For First Time

Remember ROSCA?  That's OK, the FTC just remembered it too.

It's the Restore Online Shoppers' Confidence Act and it was enacted about four years ago with a primary goal of ensuring clear and conspicuous disclosure of the terms and conditions of online "negative option" offers.

"Negative option" plans allow companies to ship goods and services to a consumer on an ongoing basis until she cancels her plan. Until she cancels, the consumer is deemed to have consented to the new goods and services - and the charges for them. Although such plans can be very convenient for consumers, they can also be problematic if consumers expected to sign up for a single order rather than a continuing order that self-renews. ROSCA was intended to address this problem by requiring marketers to get unambiguous consent for the "negative option" feature of their sales.