Last week, a class action was filed in California state court alleging that Optavia, a multilevel marketing (MLM) company selling weight loss products and services, violated California's Automatic Renewal Law (ARL). The case,...more
Last month, the New York AG filed a lawsuit against Sirius XM Radio, alleging that the company “sells subscriptions that are easy to purchase, and extremely difficult to cancel.” Consumers who want to cancel their...more
On December 20, 2023, New York Attorney General Letitia James filed a Petition in state court alleging Sirius XM Radio’s autorenewal practices violated New York’s autorenewal law. In the lawsuit, New York alleges that Sirius...more
On December 13, 2023, New York Governor Hochul signed two laws, which aim to protect consumers from (1) unwanted subscriptions by requiring notice to consumers for upcoming automatic renewals with clear instructions for...more
This past Friday, the Second Circuit reversed a lower court’s denial of a motion to compel arbitration in a putative consumer class action against fintech company Klarna. Edmundson v. Klarna, Inc., Case No. 22-557-cv (2d...more
OnlyFans Users Sue Over Iffy Auto-Renewal Subscriptions - OnlyFans is a subscription-based site that touts itself as being the place for content creators to monetize their content and connect creators with fans. But all...more
Many health tech and digital health companies offer subscription or membership services to clients and patients on an auto-renewal basis. Under this model, a subscriber’s credit card is automatically charged on a monthly,...more
Recently, Virginia and Kentucky enacted measures relating to automatic renewal offers and continuous service offers. HB 1517 was signed by the Virginia governor on March 27 to amend the Consumer Protection Act in the Virginia...more
On January 19, the CFPB issued Circular 2023-01 to affirm that companies offering “negative option” subscription services are required to comply with federal consumer financial protection laws. According to the Circular,...more
On October 10, Washington Attorney General Bob Ferguson issued a consumer alert, sharing a consumer survey that revealed 59% of Washingtonians may have unintentionally enrolled in subscription plans. The press release...more
On September 16, Venable’s Advertising and Marketing Group hosted its 9th Annual Advertising Law Symposium in Washington, DC. After a two-year hiatus due to the coronavirus pandemic, attendees were energized to convene in...more
IDAC to Ed Tech: Get Your Act Together - Post-COVID-19 learning app boom puts kids at risk, watchdogs say - An Embarrassment of Horrors - As if school-age children didn’t have enough to worry about. From the...more
On July 1, new requirements under California's automatic renewal will take effect. As we previously blogged, the amendments will require businesses to make it even easier for consumers to cancel and impose new requirements on...more
The Federal Trade Commission ("FTC") recently issued an enforcement policy cautioning companies engaged in "negative option marketing" of potential legal action if the sign-up process for subscription services fails to...more
New York has enacted a new law, effective February 9, 2021, regulating automatic renewal and some “free trial” type agreements. While some organizations may have already taken steps to be in compliance with industry...more
On September 11, 2020, the California Court of Appeal issued a decision with two crucial holdings limiting the scope of California’s Automatic Renewal Law (ARL), Business and Professions Code sections 17600, et seq....more
The COVID-19 pandemic has created unprecedented disruption and challenges for businesses navigating California’s consumer protection laws. ...more
Welcome to Three Point Shot, a newsletter brought to you by the Sports Law Group at Proskauer. Three Point Shot brings you the latest in sports law-related news and provides you with links to related materials. In this issue,...more
On July 1, 2018, California’s revised Automatic Renewal Law (ARL), Cal. Bus. & Prof. Code § 17600 et seq., goes into effect. The updated law requires e-commerce sellers, doing business in California, to allow online...more
From fashion clothing in the mail to gym memberships to monthly mobile app subscriptions, the subscription-based business model is everywhere and here to stay. As more companies adopt this model, states around the country...more