News & Analysis as of

Subscription Services Unfair or Deceptive Trade Practices Marketing

Lowenstein Sandler LLP

FTC Click-to-Cancel Rule on Hold, but California’s Automatic Renewal Law Remains Intact: What Companies Need To Know

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On July 8, the Eighth U.S. Circuit Court of Appeals vacated the Federal Trade Commission’s (FTC) "click-to-cancel" rule (FTC Rule), which would have required companies to provide customers with an easy, one-click method to...more

Troutman Pepper Locke

Massachusetts AG Campbell Releases “Junk” Fees and Auto-Renewal Regulations

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Massachusetts Attorney General (AG) Andrea Joy Campbell announced Massachusetts’ new consumer protection regulations prohibiting “junk fees” and providing consumers with greater transparency regarding trial and subscription...more

Katten Muchin Rosenman LLP

Unsubscribe: What the FTC's "Click-to-Cancel" Rule Means for Retailers and Consumers - The Katten Kattwalk/Kattison Avenue | Issue...

A curated seasonal wardrobe delivered directly to your door, the return to a jam-packed gym, personally proportioned fresh weekly meals, a coffeemaker and a new pair of sneakers shipped within an hour, or a trial run on the...more

Morris, Manning & Martin, LLP

FTC “Click to Cancel” Rule: What to Know Now

On October 16, 2024, the Federal Trade Commission (FTC) announced its final “Click to Cancel” Rule (the Rule) as a part of its ongoing review of its 1973 Negative Option Rule. The FTC revised the Rule to provide additional...more

Sheppard Mullin Richter & Hampton LLP

Click! FTC Updates Its Negative Option Rule

The FTC updated its Negative Option Rule last month and gave it a new name to emphasize the expanded scope of programs to which it applies. It will now be the “Rule Concerning Recurring Subscriptions and Other Negative Option...more

Morrison & Foerster LLP

The FTC Issues Final Rule on “Click-to-Cancel” and Negative Option Programs

After a multi-year process that was initiated in 2019, the U.S. Federal Trade Commission (FTC) has officially brought the 1973 Negative Option Rule into the 21st century, but not without opposition. The FTC has announced a...more

Moritt Hock & Hamroff LLP

FTC’s Final ‘Click to Cancel’ Rule on Negative Option Programs: What You Need to Know

On October 16, 2024, the Federal Trade Commission (FTC) announced its Final Rule revising its Negative Option Rule, now known as the Rule Concerning Recurring Subscriptions and Other Negative Option Programs (the Rule). The...more

K&L Gates LLP

Click-to-Cancel: FTC's Final Rule Will Change the Subscription Landscape Across Industries

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In an era where subscriptions are just a click away, getting out of them often frustrates consumers. Responding to that frustration, the Federal Trade Commission (FTC) revised its existing Negative Option Rule, now retitled...more

Troutman Pepper Locke

Lawsuit Filed Challenging FTC’s Final Negative Option Rule

Troutman Pepper Locke on

Earlier this week, we discussed the Federal Trade Commission’s (FTC) final amendments to the Negative Option Rule, now retitled the Rule Concerning Recurring Subscriptions and Other Negative Option Programs. These amendments,...more

Ballard Spahr LLP

FTC issues final click to cancel rule to make it easier for consumers to cancel enrollment in negative option programs

Ballard Spahr LLP on

On October 16, the FTC issued its final amendments to the Negative Option Rule, which now applies to all negative option programs and includes a “click to cancel” provision intended to make it easier for consumers to cancel...more

Troutman Pepper Locke

FTC Finalizes Amendments to Negative Option Rule

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In March 2023, we discussed the Federal Trade Commission’s (FTC) Notice of Proposed Rulemaking (NPRM) aimed at making it easier for consumers to cancel recurring subscriptions and memberships. The proposed rule was part of...more

Cozen O'Connor

New FTC Rule Makes Cancelling Negative Option Plans Easier

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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

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

Ballard Spahr LLP

The Iliad Flows: Federal Judge Allows FTC “Dark Patterns” Suit Against Amazon to Proceed

Ballard Spahr LLP on

In a lengthy ruling, a Seattle federal judge has allowed the Federal Trade Commission (FTC) to proceed with its groundbreaking case alleging that Amazon’s Prime online subscription marketing tactics constituted deceptive...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

Cozen O'Connor

AGs React Positively to FTC’s Proposed Negative Option Rule

Cozen O'Connor on

A coalition of 26 AGs filed a comment letter in support of the FTC’s proposed amendments to the Negative Option Rule, which is meant to prohibit the unfair or deceptive use of negative option marketing whereby a company takes...more

Ballard Spahr LLP

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

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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

Orrick, Herrington & Sutcliffe LLP

FTC proposes changes to Negative Option Rule

On March 23, the FTC announced a notice of proposed rulemaking (NPRM) seeking feedback on proposed amendments to the agency’s Negative Option Rule, which is used to combat unfair or deceptive practices related to...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

Smart & Biggar

Marketing & advertising tips, traps and trends for 2023

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This article highlights key tips, traps and trends for advertisers for the coming year. Though Canadian law is referenced, the concepts have global relevance.  The term “dark patterns” was first coined over a decade ago but...more

Venable LLP

Payment Processors: Are You Prepared to Uncover "Dark Patterns"?

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Risk management personnel who underwrite e-commerce merchants should have some basic understanding of the types of online merchant marketing and sales practices that are deceptive and misleading....more

WilmerHale

FTC Issues New Dark Pattern Guidance

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On September 15, 2022, the Federal Trade Commission (FTC) released a report on dark patterns (the, “Report”) that identifies the types of misleading and manipulative interface practices that the agency believes can harm...more

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