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Unfair or Deceptive Trade Practices Automatic Renewals

UB Greensfelder LLP

FTC Implements New Rule Regulating Subscription-Based Services, Free Trial Offers, and Other Automatic Renewal Sales Systems

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The Federal Trade Commission (FTC) introduced its updated Negative Option Rule on October 16, 2024 (the “New Rule”). The New Rule targets deceptive practices associated with subscription-based services through which companies...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

Foley & Lardner LLP

FTC Finalizes “Click-to-Cancel” Rule 18 October 2024

Foley & Lardner LLP on

The Federal Trade Commission (FTC) has finalized amendments to the Negative Option Rule, now retitled the “Rule Concerning Recurring Subscriptions and Other Negative Option Programs“ (“Rule”), which represents a significant...more

Cozen O'Connor

New FTC Rule Makes Cancelling Negative Option Plans Easier

Cozen O'Connor on

The FTC has finalized a new “Click-to-Cancel” rule to protect consumers from unfair or deceptive practices when seeking to cancel their enrollment in subscription services, memberships, and other recurring-payment programs....more

Fisher Phillips

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

Fisher Phillips on

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

Fenwick & West LLP

FTC Announces the Final 'Click-to-Cancel' Rule for Subscriptions

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The Federal Trade Commission has announced the final "click-to-cancel" rule, which is designed to ensure that consumers can cancel subscriptions as easily as they signed up for them. This rule covers most negative option...more

Venable LLP

Handle Autorenewal Programs with Care: Federal Trade Commission Targets Care.com for Alleged Dark Patterns and Earnings Claims

Venable LLP on

Companies that care about avoiding Federal Trade Commission (FTC) action should take heed. Last month, the FTC announced an $8.5 million settlement with Care.com, resolving claims challenging its advertising claims and...more

Morrison & Foerster LLP

MoFo’s State + Local Government Enforcement Newsletter - April 2024

Morrison Foerster’s State and Local Government Task Force is pleased to provide our bimonthly newsletter summarizing some of the most important and interesting developments from state attorneys general across the country and...more

Ballard Spahr LLP

FloatMe Settlement with FTC Contains Exacting Requirements

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On January 22, 2024, the Federal Trade Commission (FTC) entered into a Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief (the “Order”) with FloatMe Corp. (“FloatMe”), a fintech that offers...more

Venable LLP

New Year, New Rule: FTC to Review Updates to Negative Option Rule During January Informal Hearing

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In March, the Federal Trade Commission (FTC) asked for comments on a proposal to replace the Prenotification Negative Option Rule with a more expansive Negative Option Rule. Now that the FTC has had the chance to review those...more

Hudson Cook, LLP

Massachusetts Attorney General Proposes Regulation Governing "Junk Fees" and Other Sales Practices

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Massachusetts Attorney General Andrea Joy Campbell has issued a draft regulation aiming the commonwealth's deceptive trade practices statute at "junk fees" practices, automatic renewal / continuous service contracts, and...more

Orrick, Herrington & Sutcliffe LLP

26 state AGs support FTC’s proposal on Negative Option Rule

On June 26, a coalition of 26 state attorneys general from New York, Pennsylvania, Alabama, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts,...more

Ballard Spahr LLP

FTC action against Amazon targets alleged use of digital dark patterns as unfair to consumers

Ballard Spahr LLP on

Last week, the FTC filed a civil case against Amazon alleging that the company used “dark patterns” to enroll people in its Prime program. The case continues a pattern initiated by FTC Chair Lina Khan of challenging...more

Ballard Spahr LLP

FTC Sues Amazon Alleging Deceptive Marketing Tactics for Prime Subscriptions

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The Federal Trade Commission (FTC) last week filed a civil case against Amazon alleging that the company used “manipulative, coercive, or deceptive user-interface designs known as ‘dark patterns’ to trick consumers into...more

Stradling Yocca Carlson & Rauth

Beware of the FTC’s Proposed Changes to The Negative Option Rule… There is a Potential Trojan Horse

Key Takeaways - In its current form, the Negative Option Rule covers only a narrow category of negative option marketing – prenotification negative option plans. The FTC’s proposed Rule seeks to synthesize all of the...more

ArentFox Schiff

Top 10 Issues Facing Consumer Products Industry in 2023

ArentFox Schiff on

1. Consumer Law Reforms - 2023 will see an increase in class action lawsuits targeting per- and poly-fluoroalkyl substances (PFAS) in consumer products as more PFAS-limiting laws go into effect. Specifically, we expect food...more

Sheppard Mullin Richter & Hampton LLP

FTC Increases Scrutiny of Negative Option Marketing

Retailers and service providers should take note: the Federal Trade Commission (FTC) is increasing its scrutiny of negative option marketing activity to combat unfair or deceptive practices related to subscriptions,...more

Orrick, Herrington & Sutcliffe LLP

Massachusetts AG reaches $6.5M settlement over deceptive auto-renewal and collection practices

The Massachusetts attorney general recently reached a $6.5 million settlement with a home security services company, its sister companies, and its CEO to resolve allegations that the defendants violated Massachusetts consumer...more

Hudson Cook, LLP

Let 'Em Out! ROSCA and Changes to California's Auto-Renewal Law

Hudson Cook, LLP on

What's this about? Auto-renewing arrangements are more and more ubiquitous, from TV channel subscriptions to meal-kit delivery plans - and the regulators are interested. Late last year, the FTC and California took actions...more

International Lawyers Network

FTC To Focus on Subscription Services — Hints at Taking Action Against “Dark Patterns”

The FTC has issued a new Enforcement Policy Statement Regarding Negative Option Marketing (Policy Statement), generally warning companies about their compliance obligations relating to negative option programs and against...more

Cozen O'Connor

The State AG Report - Volume 7, Issue 44

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Here are last week’s curated AG and federal regulatory news stories highlighting key areas in which state and federal regulators’ decisions are having an impact across the US: Republican Attorneys General Send Letter...more

Hinshaw & Culbertson - Privacy, Cyber & AI...

FTC to Increase Enforcement Against Illegal Dark Patterns Targeting Consumers with Subscription Schemes

On October 28, 2021, the FTC issued an enforcement policy statement warning companies against utilizing illegal dark patterns that trick or trap consumers into subscription services. Dark patterns apply deceptive techniques...more

Ballard Spahr LLP

Subscription Service Agrees to Pay $10 Million for Automatic Renewal Law Violations

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Earlier this month, the Federal Trade Commission (FTC) announced a $10 million settlement with the online learning company ABCmouse for allegedly violating the FTC Act as well as the Restore Online Shoppers’ Confidence Act...more

BakerHostetler

AD-ttorneys@law

BakerHostetler on

In This Issue: - FTC Enforcement Action Slain by 11th Circuit - Chris Farley IP Holder Settles With Bike Company - California Pushes Auto-Renewal Regs in New Directions - Plaintiff Should Cop to COPPA, Google Claims -...more

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