The U.S. Court of Appeals for the Eighth Circuit vacated the Federal Trade Commission’s Rule Concerning Subscriptions and Other Negative Option Plans (often referred to as the “Click-to-Cancel” rule) on July 8, just days...more
7/9/2025
/ Administrative Procedure Act ,
Appeals ,
Consumer Protection Laws ,
Corporate Counsel ,
Federal Trade Commission (FTC) ,
Judicial Authority ,
Negative Option Rule ,
Regulatory Authority ,
ROSCA ,
Rulemaking Process ,
Subscription Services ,
Telemarketing Sales Rule ,
Vacated
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
This week, the Federal Trade Commission (FTC) filed a lawsuit in federal court against rideshare and delivery company Uber for allegedly deceptive subscription practices, including making it unreasonably difficult to cancel....more
4/25/2025
/ Automatic Renewals ,
Cancellation Rights ,
Consumer Protection Laws ,
Disclosure Requirements ,
Enforcement Actions ,
Enforcement Priorities ,
Federal Trade Commission (FTC) ,
FTC Act ,
Negative Option Rule ,
Ridesharing ,
Subscription Services ,
Uber ,
Unfair or Deceptive Trade Practices
Every company will be impacted by the new import tariffs, as they increase manufacturing costs. However, companies selling on an autorenewal basis could disproportionately feel the impact and should proceed with caution...more
4/8/2025
/ Automatic Renewals ,
Cancellation Rights ,
Class Action ,
Consumer Contracts ,
Consumer Protection Laws ,
Contract Terms ,
Customs and Border Protection ,
EFTA ,
Federal Trade Commission (FTC) ,
Imports ,
Material Change Doctrine ,
Notice Requirements ,
Regulatory Requirements ,
State Attorneys General ,
Subscription Services ,
Supply Chain ,
Tariffs
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
Ending speculation and uncertainty about whether new leadership at the Federal Trade Commission (FTC) would repeal or continue to defend the agency’s Negative Option Rule, which regulates offerings such as autorenewal of...more
3/21/2025
/ Auto-Renewal ,
Consumer Protection Laws ,
Disclosure Requirements ,
Enforcement Actions ,
Federal Trade Commission (FTC) ,
FTC Act ,
Negative Option Rule ,
Regulatory Requirements ,
Rulemaking Process ,
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
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
9/11/2024
/ Advertising ,
Automatic Renewals ,
Cancellation Rights ,
Consumer Contracts ,
Corporate Counsel ,
Enforcement Actions ,
Federal Trade Commission (FTC) ,
Marketing ,
ROSCA ,
Settlement ,
Subscription Services ,
Terms and Conditions ,
Unfair or Deceptive Trade Practices
These days, it seems like there are three guarantees in life—death, taxes, and monumental Supreme Court administrative law opinions in the summer. As you’ve probably heard by now, the trend continues this year, including...more
7/11/2024
/ Administrative Procedure Act ,
AMG Capital Management LLC v FTC ,
Chevron Deference ,
Consumer Financial Protection Bureau (CFPB) ,
Enforcement Authority ,
Federal Trade Commission (FTC) ,
Government Agencies ,
Loper Bright Enterprises v Raimondo ,
Non-Compete Agreements ,
Regulatory Authority ,
ROSCA ,
Rulemaking Process ,
SCOTUS ,
Statutory Interpretation ,
Subscription Services ,
UDAAP ,
Unfair or Deceptive Trade Practices
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 mitigating the risk of class action lawsuits, the best offense is a good defense. Companies can take many steps to reduce their exposure to class action litigation before it happens, including the tactics...more
3/8/2024
/ Advertising ,
Billing Errors ,
Class Action ,
Consumer Protection Laws ,
Contests & Promotions ,
Data Breach ,
Defense Strategies ,
Enforcement ,
Federal Trade Commission (FTC) ,
Food and Drug Administration (FDA) ,
Health Claims ,
Marketing ,
NAD ,
Risk Mitigation ,
Slack-Fill Suits ,
State Attorneys General ,
Subscription Services ,
TCPA ,
Telemarketing Sales Rule
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
It’s that time of year again. Regardless of what you call them—subscriptions, negative option programs, automatic renewals, or continuous service offers—states are continuing to enact and enforce new laws with increasingly...more
2/1/2024
/ Automatic Renewals ,
Cancellation Rights ,
Consumer Contracts ,
Contract Terms ,
Corporate Counsel ,
Disclosure Requirements ,
Enforcement ,
Enforcement Actions ,
Informed Consent ,
Keurig Inc ,
LA Times ,
New Legislation ,
Subscription Services
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
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
4/7/2023
/ Automatic Renewals ,
Cancellation Rights ,
Consent ,
Consumer Contracts ,
E-Commerce ,
Federal Trade Commission (FTC) ,
Marketing ,
Notice Requirements ,
NPRM ,
Proposed Regulation ,
Subscription Services ,
Terms and Conditions
Last month, the National Advertising Division of BBB National Programs reviewed Pier 1’s subscription rewards program and recommended that the company provide clearer disclosures of the automatic renewal program.
The...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
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