As discussed at the ERSP Summit, the Program is looking forward to adding an additional self-regulatory initiative to its lineup; that of monitoring and reviewing direct response marketing that contains negative option features.
In particular, ERSP will look to the FTC’s Restore Online Shoppers Confidence Act (ROSCA), which sets forth guidelines about what information needs to be disclosed to consumers who are purchasing a product online with a negative option feature or continuity plan. Specifically, the act “prohibits any post-transaction third-party seller (a seller who markets goods or services online through an initial merchant after a consumer has initiated a transaction with that merchant) from charging any financial account in an Internet transaction unless it has disclosed clearly all material terms of the transaction and obtained the consumer's express informed consent to the charge.”
For more information about ERSP, please click here.
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Leanne Gabinelli is an attorney with the Advertising Self-Regulatory Council.