News & Analysis as of

Consumer Contracts

Holland & Knight LLP

The New Cancel Culture: The FTC's "Click to Cancel" Rule

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The Federal Trade Commission (FTC) has made several amendments to the prior Negative Option Rule (Rule) that alter how subscription- and membership-based businesses will need to operate. This Holland & Knight alert summarizes...more

Katten Muchin Rosenman LLP

Cancel Culture - Kattison Avenue | Issue 13

The FTC's new rule makes it easier for consumers to cancel subscriptions and memberships they no longer want. The Federal Trade Commission (FTC) introduced a "click-to-cancel" rule on October 16, amending the 1973...more

Kilpatrick

The FTC takes a new swipe at autorenewal programs

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Use of California’s Auto Renewal Law as a predicate for UCL, FAL or CLRA claims has been a hotbed of consumer class action litigation. Now, the FTC has added a federal arrow to the consumer protection quiver by expanding its...more

BCLP

California, FTC Lead Push To Add Autorenewal Requirements

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If it’s been a while since you’ve looked at the state and federal laws governing autorenewals, subscriptions, and continuous service offers, your business is likely in need of an update. Multiple jurisdictions, on both state...more

Brownstein Hyatt Farber Schreck

FTC Finalizes “Click-to-Cancel” Rule Making It Easier for Consumers to Cancel Subscriptions

On Oct. 16, the Federal Trade Commission (FTC) voted 3-2 to finalize its “click-to-cancel” rule that will introduce new requirements to simplify the cancellation process for consumers wishing to terminate their subscriptions...more

Locke Lord LLP

FTC Adopts “Click-to-Cancel” Amendments to Its Negative Option Rule

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On October 16, the Federal Trade Commission announced final “click-to-cancel” amendments to its Negative Option Rule. Under the FTC’s amended Negative Option Rule...more

Morgan Lewis

FTC ‘Click-to-Cancel’ Rule Requires Canceling Recurring Charges to Be as Easy as Signing Up

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The Federal Trade Commission (FTC) recently issued its Final Rule requiring businesses subject to its authority to establish equivalency between the ease of signing up and canceling subscriptions, memberships, and other...more

Klein Moynihan Turco LLP

FTC Finalizes Subscription Renewal Rulemaking

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On October 16, 2024, the Federal Trade Commission (“FTC”) announced its final rules applicable to recurring subscription plans. According to the FTC, these rules were implemented to make it easier for consumers to stop paying...more

Kilpatrick

The FTC Expands its Negative Option Rule to Reach Autorenewal and Other Programs

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For companies who offer recurring subscriptions, it is important for them to understand the Federal Trade Commission’s recently finalized rule applicable to negative option marketing that requires such companies to make the...more

Kelley Drye & Warren LLP

Why Dissenting Statements by FTC Commissioners Matter

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Last week, the FTC, by a 3-2 vote along party lines, adopted its click-to-cancel rule, which purports to make it easier to cancel gym memberships, streaming services, and the like. [We wrote about it here.] The final rule...more

Orrick, Herrington & Sutcliffe LLP

FTC finalizes “Click-to-Cancel” Rule

On October 16, the FTC announced a final Negative Option Rule, also known as the “click-to-cancel” rule, requiring sellers to make it as easy for consumers to cancel their enrollment as it was to sign up for the goods or...more

Wiley Rein LLP

FTC Adopts Final “Click-to-Cancel” Rule with Requirements for Recurring Subscriptions

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On October 16, 2024, the Federal Trade Commission (FTC or Commission) announced its adoption of a final “click-to-cancel” Rule that regulates both sign-up and cancellation processes for subscriptions or other recurring...more

Hinch Newman LLP

FTC Announces Final “Click-to-Cancel” Recurring Subscriptions and Memberships Rule

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On October 16, 2024, the Federal Trade Commission announced a final “click-to-cancel” rule that will require sellers to make it as easy for consumers to cancel their enrollment as it was to sign-up. Most of the final rule’s...more

BakerHostetler

What the FTC’s New ‘Click-to-Cancel Rule’ Means for Your Business

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The Federal Trade Commission (FTC) finally released its long-awaited Negative Option Rule (the Final Rule), aka the “Click-to-Cancel Rule,” on October 16. The Final Rule was approved by a partisan vote of 3-2, with the two...more

Kelley Drye & Warren LLP

FTC Finalizes ​“Click to Cancel” Rule; Brings Vast Changes and New Risks to Subscription Plans, Repeat Delivery Offers

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Last year, we wrote about the FTC’s proposal to massively expand the Negative Option Rule to cover any goods or services involving a negative option or automatic renewal plan, including free trials, subscriptions, and repeat...more

Wilson Sonsini Goodrich & Rosati

Subscription and Auto-Renew Offerings Face New Hurdles: FTC Issues Broad “Click-to-Cancel” Rule Imposing Nationwide Requirements

Companies that automatically renew customers’ subscriptions or memberships, take note. On October 16, 2024, the Federal Trade Commission (FTC) announced sweeping amendments to the Negative Option Rule, which would apply to a...more

Fisher Phillips

FTC’s New Click-to-Cancel Rule Means Your Business Needs to Simplify the Cancellation Process: 5 Steps to Stay Compliant

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The federal government just fundamentally changed how businesses need to handle recurring subscriptions by unveiling its new “Click-to-Cancel” rule and making it mandatory to simplify cancellation processes. Designed to...more

Latham & Watkins LLP

In California, New Automatic Renewal and Continuous Service Requirements Signed Into Law

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Companies offering automatic renewal or continuous service terms to consumers subject to California law should review their consent, notice, and cancellation practices. On September 24, 2024, California Governor Gavin...more

Fenwick & West LLP

California Tightens Requirements for Automatically Renewing…

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On September 24, 2024, Governor Gavin Newsom signed into law Assembly Bill No. 2863, which will further amend California’s Automatic Renewal Law (ARL)....more

Troutman Pepper

Fourth Circuit Affirms Denial of Motion to Compel Arbitration Finding Duty to Read a Contract Does Not Encompass Scrolling Through...

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The U.S. Court of Appeals for the Fourth Circuit recently affirmed a district court’s decision denying a defendant’s motion to compel arbitration, underscoring the importance of clear and conspicuous notice in online...more

Kilpatrick

California's Latest Automatic Renewal Law Amendments Take Effect in July 2025

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California’s already stringent Automatic Renewal Law (“ARL”) will become more demanding in July 2025 when AB 2863, which was signed on September 24, 2024, takes effect. In short, the amendments: (1) expand the scope of the...more

Venable LLP

California Amends Autorenewal Law, with Stricter Consent Requirements and a “One Save” Rule: Fast VAST Update

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This week, California amended its automatic renewal and continuous service offer law (ARL). Key provisions include the addition of “free-to-pay conversions,” consent obligations, misrepresentation prohibitions, request for...more

Kilpatrick

Seventh Circuit sends Menards in-store pickup fees suit to arbitration

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In September 2024, the Seventh Circuit affirmed the grant of a motion to compel arbitration in a proposed class action claiming that Wisconsin-based retailer Menards used a “deceptive bait-and-switch scheme” to charge...more

Troutman Pepper

California Governor Signs New Automatic Renewal Requirements Into Law

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On September 24, California Governor Gavin Newsom signed Assembly Bill 2863 into law. The bill amends California’s existing regulations on automatic renewal offers and continuous service offers made to California consumers....more

BCLP

Smart Contracts and the Use of Arbitration to Resolve Related Disputes

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In recent years, technology advancement has introduced new methods for contract formation. In particular, the rise of blockchain technology has led to the emergence of “smart contracts”, which are digital contracts which...more

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