ROSCA & Cal. 340 Continuity Plan Change Notice
Acknowledge Recurring Payments with a Continuity Plan Receipt
This is one of 23 Supplemental Compliance Documents
The ROSCA & Cal. 340 Continuity Plan Receipt is designed as an email notice to be sent to each customer participating in a continuity plan immediately after each recurring payment. If you charge a customer's credit card periodically on a recurring basis (such as with a membership site), you are operating a continuity plan, also known as a negative option plan, which is regulated by both the Restore Online Shoppers Confidence Act (ROSCA) and the California SB 340 amendments.
ROSCA mandates that you disclose material terms of the plan before collecting billing information from customers. Informed consent must be obtained through an "I AGREE" button or similar method before charging their credit cards.
Additionally, you are required to provide customers with a simple mechanism to opt out of the plan.
To comply with ROSCA requirements regarding disclosure of material terms before collecting billing information, it is recommended that you provide this disclosure on your order form. For example, you can include language such as "After [specified time period], $30 per month until you cancel."
California SB 340 requires specific provisions in your continuity plan receipt email. You must display the plan terms conspicuously and obtain express consent from customers through an "I AGREE" button or similar method. The receipt should also include an acknowledgement of renewal terms, cancellation policies, how to cancel, and a clear notification of any material changes made to the plan.
By utilizing FTC Guardian's ROSCA & Cal. 340 Continuity Plan Receipt, you can ensure compliance with these regulations and effectively acknowledge your customers' recurring payments in the continuity plan.
Choose from a comprehensive collection of Supplemental Compliance Documents to enhance your website's legal compliance while implementing proper procedures for continuity plan receipts in accordance with ROSCA and California SB 340.
Join numerous service providers who have benefited from FTC Guardian's comprehensive approach to hosting agreements.
First Published on April 12th, 2018
Last Updated on November 28th, 2023
Supplemental Compliance Documents are only available to FTC Guardian Pro and Enterprise members.
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