FTC’s ROSCA Actions

Since 2014, the FTC has brought more than 20 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.

Twenty-three of the FTC actions since 2014 were filed in federal court and one is an administrative action. Eighteen of the cases resulted in settlement agreements, and a total of 18 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. Five of the cases are still pending against some or all of the defendants and another two have been stayed. (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:

Defendant(s) Year Type of Action Status/Outcome Monetary Penalty or Judgment?
1 Health Formulas d/b/a Simple Pure Nutrition et al. 2014 Federal Court Case Settled
2 JDI Dating et al 2014 Federal Court Case Settled
3 One Technologies 2014 Federal Court Case Settled
4 DirecTV 2015 Federal Court Case Voluntarily dismissed after judgment in favor of defendants
5 BunZai Media (AuraVie) et al. 2015 Federal Court Case 12 of the defendants settled; default judgments were entered as to 20 defendants; 1 relief defendant was dismissed
6 Direct Alternatives and Original Organics et al* 2016 Federal Court Case Settled
7 Nutraclick f/k/a Hungry Fish Media 2016 Federal Court Case Settled
8 DOTAuthority.com et al 2016 Federal Court Case Settled
9 Credit Bureau Center 2017 Federal Court Case Judgment, Appellate Court Decision, Pending Petition for Cert Decision √**
10 XXL Impressions et al 2017 Federal Court Case Settled
11 AAFE Products/BNRI Corp. et al 2017 Federal Court Case Settled
12 RevMountain et al 2017 Federal Court Case Settled
13 Hornbeam Special Situations et al 2017 Federal Court Case Stayed
14 Pact Inc. et al 2017 Federal Court Case Settled
15 Tarr Inc. et al 2017 Federal Court Case Settled
16 AdoreMe 2017 Federal Court Case Settled
17 Triangle Media Corp. et al 2018 Federal Court Case Settled
18 Redwood Scientific Technologies et al 2018 Federal Court Case 1 individual defendant settled; default judgments were entered as to all the companies; pending as to 2 of the individual defendants
19 Apex Capital Group et al 2018 Federal Court Case 14 of the defendants settled; pending against 2 of the defendants
20 Gopalkrishna Pai et al 2019 Federal Court Case Stayed
21 Elite IT Partners et al 2019 Federal Court Case Settled
22 UrthBox et al 2019 Administrative Action Settled
23 AH Media Group et al 2019 Federal Court Case Pending
24 Match Group (Match.com) 2019 Federal Court Case Pending

* 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.

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