Company: PAVS
Filing Date: 2025-08-04
Form Type: 20-F
Source: 0001929980-25-000590
Chunk: 72

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-08-04
Form: 20-F
Item: Item 4
Chunk 72
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 the informal or real-time nature of the content.

Because BW’s marketing activities may reach younger audiences, BW may be subject to the Children’s Online Privacy Protection Act (COPPA). COPPA imposes specific obligations on operators of websites, applications, and online services that are either directed toward children under the age of 13 or that knowingly collect personal information from such children. These obligations include obtaining verifiable parental consent prior to collecting, using, or disclosing personal information, providing a publicly accessible privacy policy, offering parents the ability to review and delete their child’s data, and maintaining reasonable safeguards for protecting children’s information. These requirements are particularly relevant to its use of platforms such as TikTok and YouTube, where underage users may be part of the viewing audience.

Furthermore, BW needs to comply with the Restore Online Shoppers’ Confidence Act (ROSCA), a federal law that aims to prevent deceptive online sales practices, especially in the context of free trials, negative option billing, and subscription-based models. Under ROSCA, all material terms of a transaction - including total cost, trial period duration, and cancellation procedures - must be clearly disclosed prior to the completion of a purchase. Express informed consent must be obtained from the consumer before any credit card is charged, and a simple, transparent mechanism for canceling recurring charges must be provided. These provisions are intended to promote transparency and protect consumers from unauthorized or unintended purchases.

In terms of consumer protection, BW must also comply with various state-level laws, most notably the Unfair or Deceptive Acts and Practices (UDAP) statutes. While these laws generally align with federal standards, they may impose additional obligations or establish separate enforcement mechanisms. UDAP laws prohibit deceptive, fraudulent, or unfair marketing and sales practices and are enforced by state Attorneys General as well as, in some jurisdictions, private litigants.

INFORM Consumers Act, which became effective in June 2023, is intended to enhance transparency and accountability in online marketplaces by imposing specific obligations on platforms and third-party sellers engaged in high-volume sales. Although the primary regulatory burden falls on the platform operators, the law requires high-volume third-party sellers, who conduct 200 or more transactions totaling at least $5,000 in a 12-month period, to provide verified information such as their full name, physical address, bank account, and tax identification number. This data must be periodically updated and may be disclosed to consumers under certain conditions. As a seller operating on platforms covered by this law, BW is responsible for cooperating with identity and financial verification requirements,