On Friday, the Federal Trade Commission voted to defer the compliance deadline for the amended Negative Option Rule by 60 days. The Commission issued a statement on the new deadline....more
In one of the first settlements since the new administration took office, the Federal Trade Commission (FTC) announced a $17 million monetary judgment with Cleo AI to resolve allegations that Cleo violated Section 5 of the...more
4/2/2025
/ Automatic Renewals ,
Disclosure Requirements ,
Enforcement Actions ,
False Advertising ,
Federal Trade Commission (FTC) ,
FinTech ,
Mobile Apps ,
Popular ,
ROSCA ,
Settlement ,
Subscription Services ,
Unfair or Deceptive Trade Practices
Venable's AdLaw Symposium is back!
Please join us in our Washington, DC, headquarters for this highly anticipated event focused on providing you with the information you need to promote your brand with confidence....more
3/7/2025
/ Advertising ,
Artificial Intelligence ,
Auto-Renewal ,
Best Practices ,
Beverage Manufacturers ,
Chief Compliance Officers ,
Data Privacy ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Events ,
False Advertising ,
Federal Trade Commission (FTC) ,
Fees ,
Food Manufacturers ,
Greenwashing ,
Legal Ethics ,
Marketing ,
NAD ,
Pricing ,
Privacy Laws ,
Risk Mitigation ,
State Regulators ,
Subscription Services
Last Friday in a 2-1 order, the Eighth Circuit Court of Appeals rejected an initial challenge to the Federal Trade Commission’s (FTC) Negative Option Rule. The challengers had asked the court to stay the Rule from taking...more
The Federal Trade Commission's Final Negative Option Rule ("Click to Cancel Rule") contains stringent new requirements for negative option programs, making it even more difficult to run compliant negative option offers....more
12/19/2024
/ Automatic Renewals ,
Cancellation Rights ,
Compliance ,
Consumer Contracts ,
Direct to Consumer Sales ,
Federal Trade Commission (FTC) ,
Final Rules ,
Hyperlink ,
Negative Option Rule ,
Notice Requirements ,
Subscription Services
Many alerts and articles discussing the Federal Trade Commission's (FTC) updated Negative Option Rule and the Amendments to California's Automatic Renewal law have focused on the stricter consent and cancellation...more
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
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
6/19/2024
/ Automatic Renewals ,
Cancellation Rights ,
Consent ,
Consumer Contracts ,
Federal Trade Commission (FTC) ,
Fees ,
Notice Requirements ,
ROSCA ,
Subscription Services ,
Termination Fees ,
Terms and Conditions
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
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
When it comes to negative options, the CFPB has strong opinions. As demonstrated in its new circular, these opinions generally align with those of the Federal Trade Commission (FTC), which has repeatedly targeted trial...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
1/19/2023
/ Automatic Renewals ,
Consent ,
Consumer Financial Protection Bureau (CFPB) ,
Disclosure Requirements ,
Enforcement Actions ,
Enforcement Guidance ,
Federal Trade Commission (FTC) ,
Fees ,
GrubHub ,
New Legislation ,
ROSCA ,
Settlement ,
State Attorneys General ,
Subscription Services ,
Terms of Service ,
Website Design
On October 3, 2022, a class action plaintiff filed a lawsuit against the NFL for allegedly enrolling customers in its NFL+ Premium subscription without their consent or disclosing subscription (autorenewal) billing terms, and...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
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