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Automatic Renewals Contract Terms Federal Trade Commission (FTC)

Paul Hastings LLP

Updated California and FTC Auto-Renewal Regulations Take Effect

Paul Hastings LLP on

In the fall of 2024, California and the Federal Trade Commission (FTC) amended their respective auto-renewal regulations. The amendments detail new and largely parallel disclosure, consent, and cancellation requirements for...more

Kelley Drye & Warren LLP

FTC Extends Compliance Deadline for Negative Option or ​“Click to Cancel” Rule, but Indicates Intent to Enforce as Written in July

Late Friday, the FTC announced that the Commission had voted 3-0 to extend the compliance deadline for the to-be-effective provisions of the Negative Option Rule, formerly known as the ​“Click to Cancel Rule.” While the...more

Venable LLP

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

Venable LLP on

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

Vedder Price

An Offer You Can’t Refuse: The FTC’s New “Click-to-Cancel” Rule

Vedder Price on

On January 14, 2025, the first part of the Federal Trade Commission’s (“FTC”) update to the Negative Option Rule went into effect. Negative options are contract terms that allow a seller to interpret a customer’s silence or...more

Faegre Drinker Biddle & Reath LLP

New Year, New Regulations: 2025 Brings Significant Developments to Federal and State Automatic Renewal Laws

The Greek philosopher Heraclitus is credited with the maxim, “The only constant in life is change.” Suffice it to say: automatic renewal laws (ARLs) are no exception. As subscriptions and memberships for goods and...more

BCLP

California, FTC Lead Push To Add Autorenewal Requirements

BCLP on

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

Venable LLP

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

Venable LLP on

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

Two Firsts for FTC Civil Penalty Enforcement: ROSCA for Automatic Renewals and Penalty Offense Authority for Money-Making Claims

On Friday, the FTC announced what would ordinarily be an unremarkable enforcement action against a company for unsubstantiated earnings claims. The FTC alleges that WealthPress, an investment advice company purporting to...more

Venable LLP

State Automatic Renewal Laws Are Starting to Look Like a Patchwork Quilt as the FTC Expands Enforcement of ROSCA

Venable LLP on

With several new state laws effective in 2022, it is becoming increasingly difficult for businesses to develop baseline compliance protocols across federal and state automatic renewal laws. Against this backdrop, federal...more

Fenwick & West LLP

Changes to California’s Automatic Renewal Law May Require Updates for Subscription Service Providers

Fenwick & West LLP on

Subscription services face increased scrutiny from regulators, lawmakers and the plaintiffs’ bar. As we highlighted in a recent client alert, the FTC warned companies against using “dark patterns” in connection with paid...more

Lowndes

Is your automatic renewal clause enforceable?

Lowndes on

Automatic renewal clauses, or “evergreen clauses,” are a frequent occurrence in contracts of all kinds and are becoming increasingly prevalent as businesses transition from traditional methods of selling products and services...more

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