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Bill targets aggressive online sales

This article was originally published in The Rose Sheet

Executive Summary

The use of "negative-option" schemes would be regulated under legislation introduced May 19 by Sen. Jay Rockefeller, D-W.Va. Negative-option strategies, in which marketers lure consumers with "free trial" offers and then charge their credit cards, are often used by online vendors of weight-loss "supplements" and have attracted Federal Trade Commission attention. S. 13386, the "Restore Online Shoppers' Confidence Act," would also prohibit marketers from using misleading post-transaction ads and from transferring consumer billing information to third-party sellers. The legislation follows a November 2009 report on aggressive sales tactics and awaits action by the Senate Commerce, Science and Transportation Committee

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