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New Senate Legislation Would Ban Certain Internet Sales Practices
XBIZ JULY 2010
On May 19, 2010, Senator John D. Rockefeller, Chairman of the U.S. Senate Committee on Commerce, Science, and Transportation, introduced legislation that may have a very significant impact on Internet retailers, particularly those offering services or goods via what is termed a “negative option” offer, a sales method that is very commonly used by adult online merchants.
For those unfamiliar with the practice, negative option sales generally refer to offers in which goods or services are sold to a consumer automatically unless the consumer takes some specific action to decline the sale in advance of billing. This sales method covers a variety of techniques and can take just about any form where a consumer must take an affirmative action to say “no” to an offer (such as un-check a pre-checked box) to prevent a sale. Some common examples of negative option sales currently in use in the online adult entertainment industry involve sales of memberships after free or reduced cost “trial” memberships, cross-sales of memberships to additional sites, sales of upgraded or premium services, and sales of additional live chat minutes.
Live adult videoconferencing is big, and getting bigger. Online consumers now purchase enough live cam show minutes to support thousands of regular live cam performers each day. Capitalizing on this ever-increasing demand for live adult content, more and more pay sites are including live chat up-sell options.Additionally, many of the most recognizable adult brand name companies now have their own private labeled version of a live chat site provided by one of the major live chat companies, such as Video Secrets.
[Note: the use of the terms “royalty-free” and “royalty-free music” in this article is as a generic term and is not intended to be, nor should be interpreted to be, any particular company or product.]
Music is becoming a bigger and bigger part of our online experience. From the music that is integrated into streamed video clips, to the music animating online games, to the music playing in virtual world discos, music has become an integral feature of many types of web sites. But music is also playing a larger role in many other online adult applications. For example, music is being used with increasing frequency in web ads, site tours and in online promos for an ever-increasing range of products. Paraphrasing an old Rodgers and Hammerstein song, one might rightly say that the web “is alive with the sound of music”.
"In contrast to previous economic eras, intellectual property will be the primary source of new wealth in the 21st century." - -- Gregory A Piccionelli, 1989
