---
title: "What Is ROSCA? The Federal Online Subscription Law"
description: "ROSCA is the federal online subscription law: clear terms, express consent and a simple way to cancel. What it asks of telehealth brands, and Cuvo's role."
canonical: "https://cuvo.co/glossary/restore-online-shoppers-confidence-act"
last-updated: "Oct 26, 2026"
---
**Definition:** The Restore Online Shoppers' Confidence Act (ROSCA), 15 U.S.C. 8401 to 8405, bars charging consumers online through a negative option feature, such as an auto-renewing subscription, unless the seller discloses all material terms, gets express informed consent and offers a simple way to stop.

# What is the Restore Online Shoppers' Confidence Act?

Most telehealth programs bill monthly until the patient stops, which makes them negative option sales under federal law. ROSCA sets three duties for every such sale made online, and the FTC and state attorneys general enforce them. On Cuvo Health, a licensed provider signs off on each refill before the subscription re-bills.

Published Oct 26, 2026. Facts reviewed Oct 26, 2026.

The Restore Online Shoppers' Confidence Act (ROSCA), 15 U.S.C. 8401 to 8405, enacted December 29, 2010, makes it unlawful to charge a consumer for anything sold online through a negative option feature unless the seller clearly and conspicuously discloses all material terms before obtaining billing information, obtains express informed consent before charging, and provides simple mechanisms to stop recurring charges (section 8403). ROSCA borrows its definition from the FTC's Telemarketing Sales Rule, 16 CFR 310.2(w): a provision under which the customer's silence or failure to reject or cancel is treated as acceptance. A monthly telehealth program that bills until the patient cancels fits it. On Cuvo Health, the brand sets its offer and terms, and a licensed provider signs off on each refill before the subscription re-bills.

**At a glance**
- What it is: The federal law for subscriptions and other negative option sales made online
- Citation: 15 U.S.C. 8401 to 8405, Public Law 111-345, enacted December 29, 2010
- Three duties: Disclose material terms before billing information, get express informed consent, offer a simple way to stop
- Enforcement: The FTC, as a violation of an FTC rule (section 8404), and state attorneys general (section 8405)
- Penalty: Up to $53,088 per violation, the amount in 16 CFR 1.98 as of October 2026
- On Cuvo: A licensed provider signs off on each refill before the subscription re-bills

**ROSCA's requirements applied to a telehealth subscription**

| ROSCA requires | Section | In a telehealth subscription |
| --- | --- | --- |
| **Clear and conspicuous disclosure of all material terms** | 8403(1) | Price, billing frequency, what each refill includes and how to stop, stated plainly |
| **Disclosure before billing information is obtained** | 8403(1) | The terms appear before checkout asks for the card |
| **Express informed consent before charging** | 8403(2) | An affirmative step by the patient agreeing to the recurring charge |
| **Simple mechanisms to stop recurring charges** | 8403(3) | A way to cancel the patient can find and use before the next refill bills |
| **No passing billing data to a post-transaction third party seller** | 8402(b) | Card or account data must not be passed to another seller for an upsell |

## 01. Does ROSCA apply to telehealth subscriptions?

It applies to any goods or services sold in a transaction effected on the Internet through a negative option feature, and a recurring prescription program that keeps billing until the patient cancels is one. The duties fall on the person who charges or attempts to charge the consumer. On Cuvo that is the brand that publishes the offer: payments settle to the brand's own merchant account, the brand writes its terms and cancellation path, and refills re-bill only after a licensed provider approves them.

## 02. How is ROSCA different from the FTC's click-to-cancel rule?

ROSCA is a statute; the click-to-cancel rule was the FTC's 2024 amendment of its Negative Option Rule (89 FR 90476). The Eighth Circuit vacated that amendment in 2025 in Custom Communications, Inc. v. FTC, the FTC restored the earlier rule text on February 12, 2026 (91 FR 6507), and it opened a new rulemaking with an advance notice on March 13, 2026 (91 FR 12318). No proposed rule had been published as of October 26, 2026. ROSCA was untouched by any of it, so its three duties still apply in full, alongside state automatic renewal laws.

## 03. What does a ROSCA violation cost a telehealth brand?

Section 8404 treats a violation as a violation of an FTC trade regulation rule, which opens civil penalties, currently up to $53,088 per violation under 16 CFR 1.98, along with the FTC Act's other remedies. Section 8405 lets a state attorney general sue on behalf of the state's residents. ROSCA also leaves the Electronic Fund Transfer Act in place for bank-account debits (8402(c)). This is general information, not legal advice.

**Primary sources**
- [15 U.S.C. 8403: negative option marketing on the Internet](https://www.law.cornell.edu/uscode/text/15/8403): The three duties, read Oct 26, 2026
- [15 U.S.C. 8404 and 8405: FTC and state enforcement](https://www.law.cornell.edu/uscode/text/15/8404): Treated as a violation of an FTC rule
- [16 CFR 310.2: negative option feature](https://www.ecfr.gov/current/title-16/section-310.2): The definition ROSCA adopts
- [Federal Register 91 FR 6507: Negative Option Rule restored](https://www.federalregister.gov/documents/2026/02/12/2026-02866/revision-of-the-negative-option-rule-withdrawal-of-the-cars-rule-removal-of-the-non-compete-rule-to): Feb 12, 2026, after the Eighth Circuit vacatur
- [16 CFR 1.98: adjusted civil penalty amounts](https://www.ecfr.gov/current/title-16/section-1.98): $53,088 per violation

## Frequently asked questions

**Q: What is ROSCA?**

A: ROSCA, the Restore Online Shoppers' Confidence Act, is the 2010 federal law at 15 U.S.C. 8401 to 8405 that governs subscriptions and other negative option sales made online. On Cuvo, the brand sets its subscription terms and a licensed provider signs off on each refill before it re-bills.

**Q: What does ROSCA require?**

A: Three things before a seller charges an online negative option: clear and conspicuous disclosure of all material terms before collecting billing information, express informed consent before the charge, and simple mechanisms to stop recurring charges. On Cuvo, the brand publishes those terms and Cuvo runs the provider-reviewed refill and re-bill behind them.

**Q: Does ROSCA apply to telehealth subscriptions?**

A: Yes, when the program is sold online and bills on a recurring basis until the patient cancels, which is a negative option feature. On Cuvo, payments settle to the brand's own merchant account, so the brand's published terms govern each charge.

**Q: ROSCA vs the FTC Negative Option Rule**

A: ROSCA is a statute that covers online negative option sales; the Negative Option Rule is an FTC regulation whose 2024 click-to-cancel amendments were vacated in 2025, with the earlier text restored on February 12, 2026. On Cuvo, the subscription runs on the brand's terms with a licensed provider approving each refill.

**Q: Is the FTC click-to-cancel rule in effect?**

A: No. The Eighth Circuit vacated the 2024 amendments, the FTC restored the earlier rule text on February 12, 2026, and its new rulemaking had produced no proposed rule as of October 26, 2026, while ROSCA's duty to offer a simple way to stop charges still applies. On Cuvo, the brand sets its cancellation path and Cuvo re-bills only after a provider approves the refill.

**Related pages**

- [FTC rules for telehealth subscriptions and health ads](/blog/ftc-rules-for-telehealth-subscriptions-and-health-ads): The full guide: ROSCA, state laws, recent cases and ad claims
- [How to price a GLP-1 weight loss subscription](/blog/pricing-telehealth-subscriptions): Setting the terms ROSCA asks a brand to disclose
- [LegitScript certification](/glossary/legitscript-certification): The certification behind the ads that sell the subscription
- [FTC Health Breach Notification Rule](/glossary/ftc-health-breach-notification-rule): The FTC's health data rule for the same storefront
- [Cuvo retention](/retention): Provider-reviewed refills before every re-bill
- [Telehealth glossary](/glossary): Every term a telehealth founder meets

Canonical page: https://cuvo.co/glossary/restore-online-shoppers-confidence-act