FTC’s ROSCA Actions

Since 2014, the FTC has brought 36 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.

Thirty-four of the FTC actions since 2014 were filed in federal court and two are administrative actions. Twenty-nine of the cases resulted in settlement agreements, and a total of 26 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. Six of the cases remain pending and an appeal remains pending in one case. (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.