Restore Online Shoppers' Confidence Act
PL 111-345 (S.3386), enacted 12/29/2010

124 STAT. 3618 
PUBLIC LAW 111–345—DEC. 29, 2010 
Public Law 111–345 
111th Congress 
An Act 
To protect consumers from certain aggressive sales tactics on the Internet. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Restore Online Shoppers’ Con-
fidence Act’’. 
SEC. 2. FINDINGS; DECLARATION OF POLICY. 
The Congress finds the following: 
(1) The Internet has become an important channel of com-
merce in the United States, accounting for billions of dollars 
in retail sales every year. Over half of all American adults 
have now either made an online purchase or an online travel 
reservation. 
(2) Consumer confidence is essential to the growth of online 
commerce. To continue its development as a marketplace, the 
Internet must provide consumers with clear, accurate informa-
tion and give sellers an opportunity to fairly compete with 
one another for consumers’ business. 
(3) An investigation by the Senate Committee on Com-
merce, Science, and Transportation found abundant evidence 
that the aggressive sales tactics many companies use against 
their online customers have undermined consumer confidence 
in the Internet and thereby harmed the American economy. 
(4) The Committee showed that, in exchange for ‘‘bounties’’ 
and other payments, hundreds of reputable online retailers 
and websites shared their customers’ billing information, 
including credit card and debit card numbers, with third party 
sellers through a process known as ‘‘data pass’’. These third 
party sellers in turn used aggressive, misleading sales tactics 
to charge millions of American consumers for membership clubs 
the consumers did not want. 
(5) Third party sellers offered membership clubs to con-
sumers as they were in the process of completing their initial 
transactions on hundreds of websites. These third party ‘‘post- 
transaction’’ offers were designed to make consumers think 
the offers were part of the initial purchase, rather than a 
new transaction with a new seller. 
(6) Third party sellers charged millions of consumers for 
membership clubs without ever obtaining consumers’ billing 
information, including their credit or debit card information, 
directly from the consumers. Because third party sellers 
15 USC 8401. 
15 USC 8401 
note. 
Restore Online 
Shoppers’ 
Confidence Act. 
Dec. 29, 2010 
[S. 3386] 
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08:34 Dec 07, 2012
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124 STAT. 3619 
PUBLIC LAW 111–345—DEC. 29, 2010 
acquired consumers’ billing information from the initial mer-
chant through ‘‘data pass’’, millions of consumers were unaware 
they had been enrolled in membership clubs. 
(7) The use of a ‘‘data pass’’ process defied consumers’ 
expectations that they could only be charged for a good or 
a service if they submitted their billing information, including 
their complete credit or debit card numbers. 
(8) Third party sellers used a free trial period to enroll 
members, after which they periodically charged consumers until 
consumers affirmatively canceled the memberships. This use 
of ‘‘free-to-pay conversion’’ and ‘‘negative option’’ sales took 
advantage of consumers’ expectations that they would have 
an opportunity to accept or reject the membership club offer 
at the end of the trial period. 
SEC. 3. PROHIBITIONS AGAINST CERTAIN UNFAIR AND DECEPTIVE 
INTERNET SALES PRACTICES. 
(a) REQUIREMENTS FOR CERTAIN INTERNET-BASED SALES.—It 
shall be unlawful for any post-transaction third party seller to 
charge or attempt to charge any consumer’s credit card, debit card, 
bank account, or other financial account for any good or service 
sold in a transaction effected on the Internet, unless— 
(1) before obtaining the consumer’s billing information, the 
post-transaction third party seller has clearly and conspicuously 
disclosed to the consumer all material terms of the transaction, 
including— 
(A) a description of the goods or services being offered; 
(B) the fact that the post-transaction third party seller 
is not affiliated with the initial merchant, which may 
include disclosure of the name of the post-transaction third 
party in a manner that clearly differentiates the post- 
transaction third party seller from the initial merchant; 
and 
(C) the cost of such goods or services; and 
(2) the post-transaction third party seller has received the 
express informed consent for the charge from the consumer 
whose credit card, debit card, bank account, or other financial 
account will be charged by— 
(A) obtaining from the consumer— 
(i) the full account number of the account to be 
charged; and 
(ii) the consumer’s name and address and a means 
to contact the consumer; and 
(B) requiring the consumer to perform an additional 
affirmative action, such as clicking on a confirmation button 
or checking a box that indicates the consumer’s consent 
to be charged the amount disclosed. 
(b) PROHIBITION ON DATA-PASS USED TO FACILITATE CERTAIN 
DECEPTIVE INTERNET SALES TRANSACTIONS.—It shall be unlawful 
for an initial merchant to disclose a credit card, debit card, bank 
account, or other financial account number, or to disclose other 
billing information that is used to charge a customer of the initial 
merchant, to any post-transaction third party seller for use in 
an Internet-based sale of any goods or services from that post- 
transaction third party seller. 
15 USC 8402. 
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124 STAT. 3620 
PUBLIC LAW 111–345—DEC. 29, 2010 
(c) APPLICATION WITH OTHER LAW.—Nothing in this Act shall 
be construed to supersede, modify, or otherwise affect the require-
ments of the Electronic Funds Transfer Act (15 U.S.C. 1693 et 
seq.) or any regulation promulgated thereunder. 
(d) DEFINITIONS.—In this section: 
(1) INITIAL MERCHANT.—The term ‘‘initial merchant’’ means 
a person that has obtained a consumer’s billing information 
directly from the consumer through an Internet transaction 
initiated by the consumer. 
(2) POST-TRANSACTION
THIRD
PARTY
SELLER.—The term 
‘‘post-transaction third party seller’’ means a person that— 
(A) sells, or offers for sale, any good or service on 
the Internet; 
(B) solicits the purchase of such goods or services on 
the Internet through an initial merchant after the con-
sumer has initiated a transaction with the initial merchant; 
and 
(C) is not— 
(i) the initial merchant; 
(ii) a subsidiary or corporate affiliate of the initial 
merchant; or 
(iii) a successor of an entity described in clause 
(i) or (ii). 
SEC. 4. NEGATIVE OPTION MARKETING ON THE INTERNET. 
It shall be unlawful for any person to charge or attempt to 
charge any consumer for any goods or services sold in a transaction 
effected on the Internet through a negative option feature (as 
defined in the Federal Trade Commission’s Telemarketing Sales 
Rule in part 310 of title 16, Code of Federal Regulations), unless 
the person— 
(1) provides text that clearly and conspicuously discloses 
all material terms of the transaction before obtaining the con-
sumer’s billing information; 
(2) obtains a consumer’s express informed consent before 
charging the consumer’s credit card, debit card, bank account, 
or other financial account for products or services through 
such transaction; and 
(3) provides simple mechanisms for a consumer to stop 
recurring charges from being placed on the consumer’s credit 
card, debit card, bank account, or other financial account. 
SEC. 5. ENFORCEMENT BY FEDERAL TRADE COMMISSION. 
(a) IN GENERAL.—Violation of this Act or any regulation pre-
scribed under this Act 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. The Federal 
Trade Commission shall enforce this Act in the same manner, 
by the same means, and with the same jurisdiction, powers, and 
duties as though all applicable terms and provisions of the Federal 
Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated 
into and made a part of this Act. 
(b) PENALTIES.—Any person who violates this Act or any regula-
tion prescribed under this Act shall be subject to the penalties 
and entitled to the privileges and immunities provided in the Fed-
eral Trade Commission Act as though all applicable terms and 
provisions of the Federal Trade Commission Act were incorporated 
in and made part of this Act. 
15 USC 8404. 
15 USC 8403. 
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124 STAT. 3621 
PUBLIC LAW 111–345—DEC. 29, 2010 
LEGISLATIVE HISTORY—S. 3386: 
SENATE REPORTS: No. 111–240 (Comm. on Commerce, Science, and Transpor-
tation). 
CONGRESSIONAL RECORD, Vol. 156 (2010): 
Nov. 30, considered and passed Senate. 
Dec. 15, considered and passed House. 
(c) AUTHORITY PRESERVED.—Nothing in this section shall be 
construed to limit the authority of the Commission under any 
other provision of law. 
SEC. 6. ENFORCEMENT BY STATE ATTORNEYS GENERAL. 
(a) RIGHT OF ACTION.—Except as provided in subsection (e), 
the attorney general of a State, or other authorized State officer, 
alleging a violation of this Act or any regulation issued under 
this Act that affects or may affect such State or its residents 
may bring an action on behalf of the residents of the State in 
any United States district court for the district in which the defend-
ant is found, resides, or transacts business, or wherever venue 
is proper under section 1391 of title 28, United States Code, to 
obtain appropriate injunctive relief. 
(b) NOTICE TO COMMISSION REQUIRED.—A State shall provide 
prior written notice to the Federal Trade Commission of any civil 
action under subsection (a) together with a copy of its complaint, 
except that if it is not feasible for the State to provide such prior 
notice, the State shall provide such notice immediately upon insti-
tuting such action. 
(c) INTERVENTION BY THE COMMISSION.—The Commission may 
intervene in such civil action and upon intervening— 
(1) be heard on all matters arising in such civil action; 
and 
(2) file petitions for appeal of a decision in such civil action. 
(d) CONSTRUCTION.—Nothing in this section shall be con-
strued— 
(1) to prevent the attorney general of a State, or other 
authorized State officer, from exercising the powers conferred 
on the attorney general, or other authorized State officer, by 
the laws of such State; or 
(2) to prohibit the attorney general of a State, or other 
authorized State officer, from proceeding in State or Federal 
court on the basis of an alleged violation of any civil or criminal 
statute of that State. 
(e) LIMITATION.—No separate suit shall be brought under this 
section if, at the time the suit is brought, the same alleged violation 
is the subject of a pending action by the Federal Trade Commission 
or the United States under this Act. 
Approved December 29, 2010. 
15 USC 8405. 
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