In this issue: New California Law Governs Auto Renewals; FTC Settles Over Disclosure of Children’s Information; Twitter Not Directed at Children; Facebook Issues New Promotions Guidelines; Groups File Complaint Over Online Health Marketing; Be Careful Where You Spray Paint; and Seventh Circuit Clarifies Attorneys’ Fees Under the Lanham Act.
Excerpt from "New California Law Governs Auto Renewals":
A new law took effect in California governing automatic renewals that requires companies to make greater disclosures and obtain affirmative consent from consumers prior to their being charged.
Under the new law, SB 340, companies are required to: (1) clearly and conspicuously disclose the material offer terms in visual proximity to the request for consent before a consumer subscribes; (2) obtain a consumer’s affirmative consent to the terms before the consumer is charged; (3) provide a confirmation to the consumer that includes the terms, a description of the cancellation policy, information on how to cancel and, if the offer includes a free trial, that the consumer may cancel before being charged; and (4) provide a “cost-effective, timely and easy-to-use” method for canceling, including a toll-free telephone number, e-mail address, or a postal address, if the company directly bills the consumer.
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