News & Analysis as of

Automatic Renewals Unfair or Deceptive Trade Practices

Latham & Watkins LLP

FTC Delays Enforcement of Click-to-Cancel Rule Until July 14 2025

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Companies with B2C or B2B recurring payment programs that include negative option terms now have until July 14, 2025, to ensure their disclosure, consent, and cancellation practices are compliant with the Negative Option...more

Latham & Watkins LLP

FTC’s Click-to-Cancel Rule to Take Effect on May 14, 2025, Despite Litigation

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Companies with B2C or B2B recurring payment programs that include negative option terms should review their disclosure, consent, and cancellation practices to ensure compliance with the rule....more

Alston & Bird

Cancellation Practices Back in the Spotlight as Click-to-Cancel Rule Looms

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Our Consumer Protection/FTC Group investigates the implications of a Federal Trade Commission complaint against Uber alleging deceptive billing and cancellation practices under the Restore Online Shoppers’ Confidence Act...more

Wilson Sonsini Goodrich & Rosati

FTC Files Consumer Protection Complaint Against Uber for Deceptive Billing and Cancellation Practices

On April 21, 2025, the Federal Trade Commission (FTC) announced that it had filed a complaint against Uber Technologies, Inc. and Uber USA LLC (collectively, Uber), a rideshare and delivery company. Among other things, the...more

Venable LLP

FTC Makes Clear It Will Continue Regulating Subscription Services and Signals Enforcement Priority for Negative Option Rule in...

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This week, the Federal Trade Commission (FTC) filed a lawsuit in federal court against rideshare and delivery company Uber for allegedly deceptive subscription practices, including making it unreasonably difficult to cancel....more

Venable LLP

Cleo AI Settles with FTC for $17 Million for Alleged Misleading Practices and Autorenewal Violations

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In one of the first settlements since the new administration took office, the Federal Trade Commission (FTC) announced a $17 million monetary judgment with Cleo AI to resolve allegations that Cleo violated Section 5 of the...more

McGuireWoods LLP

California Enacts New Bill to Strengthen Customer Protection on Automatic Renewals

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On September 24, 2024, California enacted Assembly Bill 2863 (the “Bill”) to take effect on July 1, 2025. The Bill updates California’s regulations governing automatic renewals and continuous services. An automatic renewal or...more

Vedder Price

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

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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

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

Morrison & Foerster LLP

The FTC’s Final “Click-to-Cancel” Rule Faces Legal and Political Hurdles

The fate of the FTC’s long-awaited final “Click-to-Cancel” rule has become tangled in uncertainty as it faces numerous lawsuits and the new incoming presidential administration. In October, the FTC published its Final Rule...more

UB Greensfelder LLP

FTC Implements New Rule Regulating Subscription-Based Services, Free Trial Offers, and Other Automatic Renewal Sales Systems

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The Federal Trade Commission (FTC) introduced its updated Negative Option Rule on October 16, 2024 (the “New Rule”). The New Rule targets deceptive practices associated with subscription-based services through which companies...more

Orrick, Herrington & Sutcliffe LLP

FTC finalizes “Click-to-Cancel” Rule

On October 16, the FTC announced a final Negative Option Rule, also known as the “click-to-cancel” rule, requiring sellers to make it as easy for consumers to cancel their enrollment as it was to sign up for the goods or...more

Foley & Lardner LLP

FTC Finalizes “Click-to-Cancel” Rule 18 October 2024

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The Federal Trade Commission (FTC) has finalized amendments to the Negative Option Rule, now retitled the “Rule Concerning Recurring Subscriptions and Other Negative Option Programs“ (“Rule”), which represents a significant...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

Fisher Phillips

FTC’s New Click-to-Cancel Rule Means Your Business Needs to Simplify the Cancellation Process: 5 Steps to Stay Compliant

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The federal government just fundamentally changed how businesses need to handle recurring subscriptions by unveiling its new “Click-to-Cancel” rule and making it mandatory to simplify cancellation processes. Designed to...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

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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

Morrison & Foerster LLP

MoFo’s State + Local Government Enforcement Newsletter - April 2024

Morrison Foerster’s State and Local Government Task Force is pleased to provide our bimonthly newsletter summarizing some of the most important and interesting developments from state attorneys general across the country and...more

Ballard Spahr LLP

FloatMe Settlement with FTC Contains Exacting Requirements

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On January 22, 2024, the Federal Trade Commission (FTC) entered into a Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief (the “Order”) with FloatMe Corp. (“FloatMe”), a fintech that offers...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

Hudson Cook, LLP

Massachusetts Attorney General Proposes Regulation Governing "Junk Fees" and Other Sales Practices

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Massachusetts Attorney General Andrea Joy Campbell has issued a draft regulation aiming the commonwealth's deceptive trade practices statute at "junk fees" practices, automatic renewal / continuous service contracts, and...more

Orrick, Herrington & Sutcliffe LLP

26 state AGs support FTC’s proposal on Negative Option Rule

On June 26, a coalition of 26 state attorneys general from New York, Pennsylvania, Alabama, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts,...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

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