FTC’s ROSCA Actions

Since 2014, the FTC has brought 45 actions alleging violations of the Restore Online Shoppers’ Confidence Act (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.

Forty-three of the FTC actions since 2014 were filed in federal court and two are administrative actions. Thirty-nine of the cases resulted in settlement agreements, and a total of 36 of the cases resulted in monetary judgments or penalties. One of the cases was voluntarily dismissed after a federal court judge entered a judgment in favor of the company. Four of the cases remain pending. (In addition to the actions listed in the table, the FTC sent a staff advisory opinion regarding ROSCA to the National Railroad Passenger Corporation (Amtrak) in 2011.)

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.