Glossary · Subscriptions

Restore Online Shoppers’ Confidence Act (ROSCA): What It Is and What It Requires

By Steve Levine · Updated June 17, 2026 · 6 min read

Quick Answer

The Restore Online Shoppers’ Confidence Act (ROSCA), 15 U.S.C. §§ 8401–8405, is a 2010 federal law that governs how businesses sell subscriptions, automatic renewals, and free-trial offers over the internet. It bars charging a consumer through a “negative option” online unless the seller (1) clearly and conspicuously discloses all material terms before getting billing information, (2) obtains the consumer’s express informed consent before charging, and (3) provides a simple way to cancel recurring charges. ROSCA is enforced by the FTC and is the federal backstop behind many auto-renewal and free-trial class actions, where it is usually paired with state Automatic Renewal Laws.

What ROSCA Is and Why It Exists

The Restore Online Shoppers’ Confidence Act is a federal consumer-protection statute Congress passed in 2010. It grew out of a Senate investigation into “data pass” schemes, in which online retailers handed a customer’s billing information to third-party membership clubs that then enrolled the customer in recurring programs they never knowingly signed up for. The result was a stream of mystery charges on credit-card statements and a wave of consumer complaints.

ROSCA’s answer was to set baseline rules for any business that uses a negative-option feature to sell online. The law does not ban subscriptions or free trials — it requires that they be sold honestly, with clear terms up front, real consent before money changes hands, and an easy exit.

Negative Options and Free Trials

A negative option is any arrangement where a consumer’s silence or failure to cancel is treated as agreement to be charged again. The most common forms are:

  1. Free-trial-to-paid offers. A “free” or low-cost trial that automatically converts to a full-price recurring charge unless the consumer cancels in time.
  2. Automatic renewals. A subscription that renews itself for another term — and bills again — without a fresh sign-off from the consumer.
  3. Continuity / club plans. Ongoing memberships that ship products or charge fees on a recurring schedule until the consumer opts out.
ROSCA focuses on these online sales because the consumer can keep being charged indefinitely unless they take affirmative steps to stop it.

The Three Core Requirements

For any online negative-option sale, ROSCA requires the seller to do three things:

  1. Clear and conspicuous disclosure. All material terms — price, billing frequency, the fact that charges recur, and how to cancel — must be disclosed clearly before the seller obtains the consumer’s billing information.
  2. Express informed consent. The seller must get the consumer’s affirmative agreement to the negative-option terms before charging. A pre-checked box or a term buried in a long policy generally is not enough.
  3. Simple cancellation. The seller must provide simple mechanisms for the consumer to stop recurring charges — cancellation should not be deliberately harder than sign-up.
ROSCA also restricts data-pass arrangements, where a first seller passes a consumer’s account or billing information to a third party for a post-transaction upsell — the abuse the statute was originally written to stop.

Who Enforces ROSCA

ROSCA is enforced primarily by the Federal Trade Commission, and a violation is treated as a violation of an FTC rule, which can carry civil penalties and orders to change business practices. State attorneys general can also bring actions. The FTC has used ROSCA in a series of enforcement cases against companies accused of trapping customers in subscriptions or making cancellation needlessly difficult.

ROSCA does not provide a broad private right of action of its own, so individual consumers usually pursue the same conduct through state laws — state Automatic Renewal Laws and unfair-competition statutes — which is where most private subscription class actions are filed.

ROSCA and State Auto-Renewal Laws

ROSCA is the federal layer; state Automatic Renewal Laws (ARLs) are the state layer, and the two cover much of the same ground: clear disclosure of renewal terms, affirmative consent before charging, and an easy way to cancel. Because of that overlap, subscription and free-trial class actions routinely cite both — ROSCA as the federal standard the FTC enforces, and a state ARL as the vehicle for the private class claims. If you are reading a notice or claim form for a subscription case, the claim form and the settlement’s injunctive terms will often track these same disclosure-consent-cancellation rules.

As always, being named in a complaint is not a finding of wrongdoing, and a ROSCA-based allegation is not by itself a payout — allegations must be proven, and in a class action a class must be certified before any recovery is distributed.

Frequently Asked Questions

What is the Restore Online Shoppers' Confidence Act?

The Restore Online Shoppers' Confidence Act (ROSCA), 15 U.S.C. §§ 8401–8405, is a 2010 federal law that regulates how businesses sell subscriptions, automatic renewals, and free-trial offers over the internet. It prohibits charging a consumer through a negative-option feature online unless the seller clearly and conspicuously discloses all material terms before getting billing information, obtains the consumer's express informed consent before charging, and gives the consumer simple ways to stop recurring charges.

What is a negative option under ROSCA?

A negative option is a sales term where a consumer's silence or failure to cancel is treated as acceptance of an ongoing charge. Free trials that convert to paid subscriptions, automatically renewing memberships, and continuity or "club" plans are all negative-option features. ROSCA targets these online offers because the consumer can be charged again and again unless they take action to stop it.

What does ROSCA require sellers to do?

ROSCA sets three core requirements for online negative-option sales: (1) clearly and conspicuously disclose all material terms of the transaction before obtaining the consumer's billing information; (2) obtain the consumer's express informed consent before charging; and (3) provide simple mechanisms for the consumer to stop recurring charges. It also restricts "data pass" arrangements where one seller passes a consumer's billing information to a third party for a post-transaction upsell.

Can consumers sue directly under ROSCA?

ROSCA itself is primarily enforced by the Federal Trade Commission and state attorneys general; a ROSCA violation is treated as a violation of an FTC rule. Consumers usually reach the same conduct through state laws — such as state Automatic Renewal Laws and unfair-competition statutes — which can carry private rights of action. In practice, subscription and auto-renewal class actions often allege ROSCA-style failures (no clear disclosure, no real consent, hard-to-cancel) under those state laws.

How does ROSCA relate to state Automatic Renewal Laws?

ROSCA is the federal layer; state Automatic Renewal Laws (ARLs), like California's, are the state layer. They cover much of the same ground — clear disclosure of renewal terms, affirmative consent, and an easy way to cancel — so subscription cases frequently cite both. State ARLs are often where the private class-action claims live, while ROSCA supplies the federal standard the FTC enforces.

Related Terms

About This Page

General legal-information about the Restore Online Shoppers’ Confidence Act, not legal advice. Statutes and regulations change, and how they apply depends on the facts of a particular situation. For the controlling text, see ROSCA itself (15 U.S.C. §§ 8401–8405) and the FTC’s guidance. If you think your rights were affected, consult a qualified attorney in your jurisdiction.

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