FTC’s ROSCA Actions

Since 2011, the FTC has brought 53 actions alleging violations of the Restore Online Shoppers’ Confidence Act (ROSCA). (The agency has also issued a staff advisory opinion regarding the application of ROSCA.) ROSCA prohibits companies from charging consumers through negative-option offers in internet transactions unless they meet certain requirements, including disclosing all material terms of the transactions, providing consumers with a simple way to stop recurring charges and obtaining consumers’ express informed consent to the charges.

Fifty-one of the 53 FTC actions were filed in federal court and two were administrative actions. Forty-six of the cases resulted in settlement agreements, and a total of 43 of the cases resulted in monetary awards. One of the cases was voluntarily dismissed after a federal court judge entered a judgment in favor of the company. Seven of the cases remain pending.

The table below contains more detailed information about the FTC’s ROSCA actions:

* While the FTC did not allege that the defendants in the Direct Alternatives case violated ROSCA, the defendants agreed not to violate ROSCA in the settlement agreement.

** While the district court ordered the defendants to pay monetary penalties, the Seventh Circuit Court of Appeals vacated the restitution award.

*** This lawsuit alleges that company’s deceptive sales and billing practices violated federal law and a court order from a 2016 FTC case.