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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
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
The Federal Trade Commission (FTC) has made clear its focus on automatic renewal programs with high-profile lawsuits in recent weeks, alleging violations of the Restore Online Shoppers' Confidence Act (ROSCA). Below are some...more
The California legislature recently renewed its efforts to regulate automatic renewal programs with proposed amendments to its Automatic Renewal Law (ARL). This development does not follow any lack of attention to this area...more
In the wake of increasing continuity billing practice complaints, the Federal Trade Commission (“FTC”) is again taking a hard look at the space. The FTC has once again reviewed its 1973 Negative Option Rule, which was...more
Last week, California's legislature proposed amendments to its Automatic Renewal Law (ARL) to tighten the already-strict requirements for autorenewal, negative option, and continuous service offers. The law would impose new...more
The Federal Trade Commission (FTC), state attorneys general, and class action plaintiffs continue to scrutinize negative option and continuity offers. Negative option marketing can include pre-notification negative option...more
Subscription services, initially marketed as a cheaper, more accessible option, have recently been experiencing a price surge. In 2023, top subscription apps like Apple Music, Amazon Music, YouTubeTV, Netflix, Peacock, HBO...more
If you are a subscription marketer, you have likely heard the buzz about the Federal Trade Commission's Notice of Proposed Rulemaking (NPRM) concerning the Negative Option Rule. If implemented, the proposed rule would impact...more
On March 23, the Federal Trade Commission announced proposed changes to its Negative Option Rule. This latest announcement appears to be another move by the Commission in its recent flurry of activities to ramp up its...more
Payment service providers should take note of an expansive new rule proposed by the Federal Trade Commission (FTC) intended to protect consumer shoppers of goods and services sold on a subscription basis. For merchants...more
Mornings for advertising lawyers usually start slow – coffee in one hand and phone in the other while we glance at emails. Imagine our surprise the other morning when we saw that the Federal Trade Commission (FTC) had issued...more
Last week, the Federal Trade Commission announced that its proposed rule replacing its Prenotification Negative Option Rule would result in new, expansive requirements for all forms of negative option offers, including...more
In January, the Ninth Circuit agreed with a California district court's finding that a software company's autorenewal practices did not violate California's autorenewal law. The decision reflects a win for companies offering...more
The law surrounding negative option and continuity programs continues to evolve rapidly. Feeling a bit overwhelmed with the latest developments? Below is what you need to know in light of new laws, new enforcement actions,...more
New laws regulating certain providers of automatically renewing subscription services were passed this year in Idaho, Tennessee, Virginia, and, most recently, New Jersey. These laws are the most recent additions to a growing...more
Autorenewal programs remain in the crosshairs for private class action plaintiffs, as evidenced by another lawsuit filed in California targeting numerous technical requirements in the state's automatic renewal law. ...more
Businesses that allow customers to sign up for automatically renewing subscriptions must comply with a patchwork of state and federal regulations. The Federal Trade Commission (FTC) recently issued an Enforcement Policy...more
In a significant decision interpreting California’s automatic renewal law, Cal. Bus. & Prof. Code §§ 17600 et seq. (“ARL”), the Ninth Circuit Court of Appeals affirmed a lower court’s dismissal of a class action complaint...more
New York recently became the latest state to enact strict laws regarding the provision of automatic renewal and continuous service clauses in paid subscription or purchasing agreements with consumers (N.Y. Gen. Bus. Law §§...more
We used to think of subscriptions as mostly for newspapers and magazines, but today you can subscribe to get cosmetics, cars, clothes, mental health counseling – even a curated selection of cat toys and treats that will show...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
Retailers are being targeted by class action lawsuits alleging that automatic renewal of loyalty programs requiring an annual fee violates California law. In the past year and a half, more than 100 lawsuits have been filed...more