The claim
Under the Restore Online Shoppers' Confidence Act (15 U.S.C. § 8403), it is unlawful for any person to charge or attempt to charge a consumer for goods or services sold in a transaction effected on the Internet through a negative option feature unless the person (1) provides text that clearly and conspicuously discloses all material terms of the transaction before obtaining the consumer's billing information, (2) obtains the consumer's express informed consent before charging the consumer's financial account, and (3) provides simple mechanisms for the consumer to stop recurring charges. The statute takes the term "negative option feature" from the FTC's Telemarketing Sales Rule, whose definition (16 CFR § 310.2(w)) covers a provision under which the customer's silence, or failure to take an affirmative action to reject goods or services or to end the agreement, is interpreted by the seller as acceptance of the offer.
The receipt
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 consumer'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.
Violation of this chapter or any regulation prescribed under this chapter 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.
Except as provided in subsection (e), the attorney general of a State, or other authorized State officer, alleging a violation of this chapter or any regulation issued under this chapter 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 … to obtain appropriate injunctive relief.
What the statute doesn't cover
This section applies to a transaction "effected on the Internet." It uses the phrases "clearly and conspicuously" and "simple mechanisms" without listing screens, steps or deadlines, so how they apply to a particular company depends on how that company's checkout and cancellation actually work. This page describes the text of the statute, not any company's practices.
This page covers the statute only. The FTC's separate Negative Option Rule and state laws on automatic renewal are not covered here.
What you can do
For a recurring online charge you don't recall agreeing to, the statute's three conditions are what to look for: what text was shown before billing details were taken, where consent was given, and what mechanism was offered to stop the charges.
Sources: 15 U.S.C. § 8403 · § 8404 · § 8405 (Office of the Law Revision Counsel) · 16 CFR § 310.2 (Telemarketing Sales Rule, on eCFR)
Sources last checked: October 8, 2026.
Everything here is consumer information — not financial or legal advice. It covers what a rule says and where to find it; the decisions stay yours.