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Contract Terms Subscription Services

Sheppard Mullin Richter & Hampton LLP

California’s “Auto Renewal Law” Takes Effect on July 1

Amendments to California’s Automatic Renewal Law (ARL) will take effect on July 1, 2025. Enacted in September 2024 through Assembly Bill No. 2863, the amendments expand disclosure, consent, and cancellation obligations for...more

Cozen O'Connor

NY Settles with Equinox for Allegedly Making Consumers Sweat over Negative Option Plans

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New York AG Letitia James entered into a settlement with Equinox Group, LLC (Equinox Group), which operates fitness services under Equinox, Equinox+, and SoulCycle, resolving allegations that its subscription and cancellation...more

Lewitt Hackman

Service Franchisors: New Rules in California for Automatic Renewals July 1st

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From streaming services and gym memberships to software vendor agreements and e-commerce franchises, automatic contract renewals are common occurrences. Currently, California law protects consumers regarding automatic renewal...more

Winstead PC

The Federal Trade Commission (FTC) Click-to-Cancel

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The Federal Trade Commission (“FTC”) has recently announced that the FTC’s Click to Cancel Rule (the “Rule”) has been postponed to July 14, 2025. Originally planned to become effective May 14, 2025, the Commission released...more

Womble Bond Dickinson

FTC Defers Some Click-to-Cancel Rule Enforcement to July 14, 2025

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Companies with recurring payment programs with negative option terms now have until July 14, 2025, to bring their disclosure, consent, and cancellation practices into full compliance....more

Fisher Phillips

FTC’s Click-to-Cancel Rule Delayed Amid Legal Challenges: What Businesses Need to Know

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Federal officials just postponed enforcement of the Click-to-Cancel rule, which requires businesses offering subscriptions or memberships to provide a cancellation process as straightforward as the sign-up procedure. The...more

Alston & Bird

FTC Delays Compliance Deadline for Click-to-Cancel Rule Until July 14, 2025

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Our Consumer Protection/FTC Team notes that the Federal Trade Commission extended the compliance deadline of the Negative Option Rule (better known as the Click-to-Cancel Rule) by 60 days....more

Venable LLP

Subscription Sellers Take Note: New Tariffs Could Hit You Hard and Require You to Notify Customers

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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

Benesch

Navigating the Fine Print: Ninth Circuit Tightens Scrutiny on Digital Arbitration Agreements

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A recent Ninth Circuit decision, Chabolla v. ClassPass, Inc., underscores critical considerations for retailers with online Terms of Service / Use agreements, particularly regarding arbitration provisions and related consumer...more

Blake, Cassels & Graydon LLP

B.C. Proposes Consumer Protection Reforms, Aims to Restrict Certain Contract Terms

On February 25, 2025, the British Columbia government introduced Bill 4, the Business Practices and Consumer Protection Amendment Act, 2025 (Bill) for the stated purpose of protecting people from “unfair contract terms” and...more

Eversheds Sutherland (US) LLP

US & UK: Evolving regulations on consumer subscription contracts

Stronger consumer protections demand compliance or face penalties - Why should I read this? Subscription contracts, common in digital markets, have faced criticism as many consumers forget to cancel their free trials and...more

Davis Wright Tremaine LLP

No Assent Without Affirmative Action – Challenges in Binding Former Subscribers to TOS Amendments

Two decisions from earlier this year illustrate the difficulty in enforcing terms of service (TOS) amendments against former subscribers or customers. Even when a company provides the former subscriber with notice of the TOS...more

Cooley LLP

Government Reveals New Proposals for Incoming Subscription Contracts Regime Under DMCC Act

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In our last update on the Digital Markets Competition and Consumer Act (DMCC Act), we outlined some of the key consumer protection enhancements set to come into force in the UK. In particular, the DMCC Act sets out new rules...more

Hogan Lovells

UK Government consults on the implementation of the new subscription contract regime

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Ahead of the implementation of the new subscription contract regime set out in the Digital Markets, Competition and Consumers Act 2024 (“DMCCA”), which is due to come into force during 2026, the UK Government is consulting on...more

Arnall Golden Gregory LLP

The Pitch - October 2024

The Pitch newsletter is a monthly update of legal issues and news affecting or related to the music, film and television, fine arts, media, professional athletics, eSports, and gaming industries. The Pitch features a diverse...more

BCLP

California, FTC Lead Push To Add Autorenewal Requirements

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If it’s been a while since you’ve looked at the state and federal laws governing autorenewals, subscriptions, and continuous service offers, your business is likely in need of an update. Multiple jurisdictions, on both state...more

Wilson Sonsini Goodrich & Rosati

California Amends Automatic Renewal Law (Again)

California Continues to Tighten and Expand Automatic Renewal Law with New Restrictions Taking Effect July 1, 2025 On September 24, 2024, Governor Gavin Newsom signed into law Assembly Bill No. 2863, which amends California’s...more

Venable LLP

California Amends Autorenewal Law, with Stricter Consent Requirements and a “One Save” Rule: Fast VAST Update

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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

Kelley Drye & Warren LLP

California Updates Its Automatic Renewal Law (Again)

Automatic renewals continue to be a big priority for state regulators. When companies work to develop strategies to comply with the growing patchwork of specific state laws in this area, they often start by looking at...more

BCLP

The DMCCA: Taking a Closer Look at the Impact on Subscription Contracts

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The Digital Markets, Competition and Consumers Act 2024 (DMCCA) has recently received royal assent, following the announcement of the July General Election. We examine the key developments in our previous article. One very...more

Goodwin

Subscription-Secured Credit Facilities: Recent Developments in the US Market and Considerations for Real Estate Funds

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Fund-level subscription-secured revolving lines of credit are a well-established instrument in the toolkits of a variety of private equity fund sponsors and managers, including for venture capital funds, hedge funds, debt...more

Morgan Lewis - Tech & Sourcing

Back to Basics: The Use and Purpose of Defined Terms

There are many basic contracting principles that can help streamline and create a readable and clear contract, including the proper use of defined terms. Consistent with the phrase, a defined term is a word or term, often...more

Troutman Pepper Locke

Compliance Tips on State Automatic Renewal Contract Laws

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During the last several years, many states have adopted automatic renewal contract, or ARC, laws for the protection of consumers, driven in large part by new subscription-based contracts sold in digital distribution and...more

Venable LLP

Your 2024 Outlook: California’s Enforcement Trends and New State Laws Governing Automatic Renewal Programs

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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

Orrick, Herrington & Sutcliffe LLP

New York State enhances the consumer notification obligations on automatic renewals

Recently, the State of New York enacted SB 5941-B (the “Act”), which revises the general business law, focusing on the obligation of businesses to inform consumers about an impending automatic renewal or continuous service...more

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