03-23-2011, 05:18 AM
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Industry Role:
Join Date: Aug 2006
Location: Little Vienna
Posts: 32,235
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Crossales outlawed in usa?
Atleast it look that way.
Quote:
President Barack Obama has signed into law the Restore Online Shoppers? Confidence Act (ROSCA). The new law restricts "post-transaction third-party marketing," where a shopper's online purchasing information is passed from one merchant to another, who then uses that data to enroll the consumer in their programs, oftentimes without the consumer?s knowledge or consent.
The Act makes it unlawful for any Internet merchant to pass personal financial data -- credit card, debit card, bank account, financial account numbers or any other billing information -- to third party merchants for use in an Internet-based sale of goods or services from the post- transaction third party seller.
ROSCA was developed as a result of an investigation conducted by the Senate Committee on Commerce, Science and Transportation. The Committee found hundreds of honest online retailers were sharing their billing, credit card and debit card information with third party sellers through the data pass process. Some third party sellers then offered consumers ?memberships? which were cleverly disguised as part of the consumer?s initial purchase. The consumers were given a ?negative option? where they could decline the membership after an initial trial period. Following the free trial period consumers who did not cancel the membership were charged recurring fees.
The new law deems this practice to be a misleading sales tactic.
In addition, ROSCA makes it unlawful for any Internet merchant to pass personal financial data -- credit card, debit card, bank account, financial account numbers or any other billing information -- to third party merchants for use in an Internet-based sale of goods or services from the post- transaction third party seller.
The Act prohibits the practice of negative option marketing, unless the merchant:
(1) provides text that clearly and conspicuously discloses all material terms of the transaction before obtaining the consumer?s billing information;
(2) obtains a consumer?s express informed consent before charging the consumer for the transaction; and
(3) provides simple mechanisms for a consumer to stop any recurring charges.
Violations of ROSCA shall be treated as a violation of a rule under section 18 of the Federal Trade Commission Act (15 U.S.C. 57a) regarding unfair or deceptive acts or practices.
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