How The Restore Online Shoppers’ Confidence Act Protects You
consumers have been leery of shopping online, and they may have had
reason to worry. For years, hundreds of retailers had been passing on
customers’ credit and debit card information to third-party marketers,
which would charge those consumers for memberships, products and
services they didn’t want. “It was happening a lot,” said Pam Dixon,
executive director of the California-based World Privacy Forum, a public
interest research group.
But late last year, a federal law was passed to stop these egregious
sales tactics. The Restore Online Shoppers’ Confidence Act prevents
online retailers from sharing customers’ billing information with
outsiders and requires Internet marketers to get consumers’ consent
before charging for goods and services.
The most amazing thing about the law is that it was needed in the
first place. Many consumers assumed they had these legal protections
already. But apparently, some online retailers needed to have Congress
step in and tell them not to sell out their customers.
Mike Young, a Dallas lawyer representing businesses that operate online, says that...[read more...]