“Software-as-a-Service,” commonly known as “SaaS,” is a subscription-based software distribution model in which the vendor allows users to connect to and use cloud-based applications over the Internet for the subscribed term....more
U.S. Citizenship and Immigration Services (USCIS) recently announced a Temporary Final Rule extending the automatic extension period for certain Employment Authorization Document (EAD) renewal applicants from up to 180 days...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
Last month, the New York AG filed a lawsuit against Sirius XM Radio, alleging that the company “sells subscriptions that are easy to purchase, and extremely difficult to cancel.” Consumers who want to cancel their...more
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
On December 13, 2023, New York Governor Hochul signed two laws, which aim to protect consumers from (1) unwanted subscriptions by requiring notice to consumers for upcoming automatic renewals with clear instructions for...more
This past Friday, the Second Circuit reversed a lower court’s denial of a motion to compel arbitration in a putative consumer class action against fintech company Klarna. Edmundson v. Klarna, Inc., Case No. 22-557-cv (2d...more
The Federal Trade Commission (FTC) alleged that Amazon used digital marketing tactics known as “dark patterns” to trick millions of customers into unknowingly enrolling in Amazon Prime auto-renewing subscriptions, while...more
OnlyFans Users Sue Over Iffy Auto-Renewal Subscriptions - OnlyFans is a subscription-based site that touts itself as being the place for content creators to monetize their content and connect creators with fans. But all...more
Many health tech and digital health companies offer subscription or membership services to clients and patients on an auto-renewal basis. Under this model, a subscriber’s credit card is automatically charged on a monthly,...more
Automatic Renewal Laws (ARLs)—statutes governing continuity programs and automatically renewing contracts—have proliferated throughout the United States since 2010. Companies that offer automatic renewal programs face an...more
Recently, Virginia and Kentucky enacted measures relating to automatic renewal offers and continuous service offers. HB 1517 was signed by the Virginia governor on March 27 to amend the Consumer Protection Act in the Virginia...more
On January 19, the CFPB issued Circular 2023-01 to affirm that companies offering “negative option” subscription services are required to comply with federal consumer financial protection laws. According to the Circular,...more
On October 10, Washington Attorney General Bob Ferguson issued a consumer alert, sharing a consumer survey that revealed 59% of Washingtonians may have unintentionally enrolled in subscription plans. The press release...more
On September 16, Venable’s Advertising and Marketing Group hosted its 9th Annual Advertising Law Symposium in Washington, DC. After a two-year hiatus due to the coronavirus pandemic, attendees were energized to convene in...more
IDAC to Ed Tech: Get Your Act Together - Post-COVID-19 learning app boom puts kids at risk, watchdogs say - An Embarrassment of Horrors - As if school-age children didn’t have enough to worry about. From the...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
The Federal Trade Commission ("FTC") recently issued an enforcement policy cautioning companies engaged in "negative option marketing" of potential legal action if the sign-up process for subscription services fails to...more
New York has enacted a new law, effective February 9, 2021, regulating automatic renewal and some “free trial” type agreements. While some organizations may have already taken steps to be in compliance with industry...more
On September 11, 2020, the California Court of Appeal issued a decision with two crucial holdings limiting the scope of California’s Automatic Renewal Law (ARL), Business and Professions Code sections 17600, et seq....more
The COVID-19 pandemic has created unprecedented disruption and challenges for businesses navigating California’s consumer protection laws. ...more
State insurance departments across the country are continuing to provide guidance in response to the COVID-19 outbreak. In this update, Faegre Drinker spotlights the current California Department of Insurance (CDI) guidance...more
Following in the footsteps of several states that recently enacted new bills or amended existing legislation on automatic renewal contracts, federal lawmakers have jumped on the bandwagon....more
“Free” trial offers that did not adequately state the terms of auto renewal programs and failed to disclose compensated reviews resulted in a deal with the Federal Trade Commission (FTC) for UrthBox, Inc., and its principal,...more
Subscription plans that automatically renew at the end of a term are becoming more popular with companies. They’re also getting more scrutiny from regulators. As we’ve posted before, some states regulate how these plans can...more