Signature January/February 2015 - 42

legalease
checking the box or re-typing the email
address, the consumer is providing an
electronic signature to authorize his or
her account to be debited/charged in accordance with the offer terms and conditions. In addition, require the consumer
to click an "I agree" button on the screen
to authorize the transaction. Satisfaction
of the Regulation E requirements for
online transactions also will satisfy the
NACHA requirements.
Similar to the requirements of Regulation E and ROSCA, the credit card
brands (e.g., Visa and MasterCard) have
established their own regulations governing merchant transactions. The Visa
rules, for example, require merchants to
obtain a consumer's authorization to set
up a recurring payment plan and provide
an online cancellation procedure.

SUGGESTED BEST PRACTICES
Trade and professional associations interested in allowing their members or the
public to purchase goods or services on a

recurring basis online should review their
websites and payment portals to ensure
that they comply with ROSCA and the
various payment-specific laws and regulations discussed here. Implementing the
following best practices will go a long way
toward ensuring compliance with the law:
n■ The website terms and conditions
should include a section on preauthorized recurring payments for products and services.
n■ The website offer page and payment
portal should include clear disclosures regarding the recurring nature
of the transaction.
n■ The consumer should indicate his or
her affirmative consent for recurring
payments by clicking a checkbox and
an "I Agree" button to complete the
transaction.
n■ The association should provide the
consumer a copy of his or her authorization that can be printed - from
either a print screen following the
purchase or a welcome email sent

We're all ears

to the consumer - at least three
days in advance of the first recurring payment.
n■ The association should send the consumer a payment reminder notice
in advance of the next scheduled
payment (especially for annual payments or other payment terms longer
than month to month).
n■ The association should be properly
equipped to handle and process cancellation requests and manage other
customer service issues. n

Jeffrey S. Tenenbaum (jstenenbaum
@Venable.com) is a partner, and Andrew E.
Bigart (aebigart@Venable.com) is an associate in
Venable's Washington, DC office.

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42

JANUARY/FEBRUARY 16

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Table of Contents for the Digital Edition of Signature January/February 2015