If you are like many online sellers today, the US would be a sizeable market for you to work with. If this is the case, then you should be aware of the new law passed late last year. The “Restore Online Shoppers’ Confidence Act” (S. 3386) aims to protect the American online consumer certain aggressive sales tactics on the Internet.
The law looks into some aspects of ecommerce such as “data pass” or the practice of exchanging payment for customer’s billing information – including credit card and debit card numbers – with third party sellers.
The law also looks at “negative options” – this is the practice of some merchants to automatically enroll members into a paid membership club after a free trial period. The said consumers are then charged periodically until they affirmatively cancel their membership.
The heart of the Restore Online Shoppers’ Confidence Act are the new requirements for ecommerce websites before they can charge or attempt to charge any consumer’s financial account. This includes clear and conspicuous disclosure of all material terms and express informed consent from the consumer prior to charging.
While it aims to protect the consumer, the new law is also fair to online sellers. Any violation of this law would be classified as an unfair or deceptive act and practice under the Federal Trade Commission. Penalties include a fine of up to $10,000 per violation and civil action.
You can find out more about the Act here: http://commerce.senate.gov/public/?a=Files.Serve&File_id=34de7a0c-ad3e-431a-a1ad-131c5e146833
Stay well-informed of the laws that exist in your current target markets to avoid any hassle in the future.
Happy selling!
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