Podcast - The FTC's Click to Cancel Proposal
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
The Digital Markets, Competition and Consumers Act 2024 (DMCCA) has recently received royal assent, following the announcement of the July General Election. We examine the key developments in our previous article. One very...more
The Federal Trade Commission (FTC) has made clear its focus on automatic renewal programs with high-profile lawsuits in recent weeks, alleging violations of the Restore Online Shoppers' Confidence Act (ROSCA). Below are some...more
The California legislature recently renewed its efforts to regulate automatic renewal programs with proposed amendments to its Automatic Renewal Law (ARL). This development does not follow any lack of attention to this area...more
Last week, California's legislature proposed amendments to its Automatic Renewal Law (ARL) to tighten the already-strict requirements for autorenewal, negative option, and continuous service offers. The law would impose new...more
The Federal Trade Commission (FTC), state attorneys general, and class action plaintiffs continue to scrutinize negative option and continuity offers. Negative option marketing can include pre-notification negative option...more
During the last several years, many states have adopted automatic renewal contract, or ARC, laws for the protection of consumers, driven in large part by new subscription-based contracts sold in digital distribution and...more
It’s that time of year again. Regardless of what you call them—subscriptions, negative option programs, automatic renewals, or continuous service offers—states are continuing to enact and enforce new laws with increasingly...more
Recently, the State of New York enacted SB 5941-B (the “Act”), which revises the general business law, focusing on the obligation of businesses to inform consumers about an impending automatic renewal or continuous service...more
In the United States, consumer-facing companies must comply with not just one set of laws but the laws of all 50 states. Eversheds Sutherland presents periodic consumer-related updates to inform companies entering or already...more
Subscription services, initially marketed as a cheaper, more accessible option, have recently been experiencing a price surge. In 2023, top subscription apps like Apple Music, Amazon Music, YouTubeTV, Netflix, Peacock, HBO...more
In 2017, the FTC announced that Adore Me, an online lingerie company, had agreed to return more than $1.3 million to customers who enrolled in a negative-option membership program offering discounts and other benefits. Almost...more
Blurred Lines: NAD Says Supplement Company Must Add Conspicuous Disclosures When Editorial Content Is Advertising - Once again, the National Advertising Division has examined the increasingly blurry line between...more
In this episode of his "Clearly Conspicuous" podcast series, "The FTC's Click to Cancel Proposal," consumer protection attorney Anthony DiResta discusses the Federal Trade Commission's (FTC) latest proposed rule that aims to...more
On March 23, 2023, the Federal Trade Commission ("FTC") announced that it would propose a "click to cancel" provision in its rules governing subscriptions and recurring memberships. According to the FTC, the proposed rule...more
If you are a subscription marketer, you have likely heard the buzz about the Federal Trade Commission's Notice of Proposed Rulemaking (NPRM) concerning the Negative Option Rule. If implemented, the proposed rule would impact...more
On March 23, the Federal Trade Commission announced proposed changes to its Negative Option Rule. This latest announcement appears to be another move by the Commission in its recent flurry of activities to ramp up its...more
On March 23, 2023, the Federal Trade Commission (“FTC” or “Commission”) issued a Notice of Proposed Rule Making (“NPRM”) seeking comment on proposed amendments to the Commission’s Negative Option Rule. The proposed...more
How hard is it to just cancel? If you have found yourself pondering this question in a heat of frustration after seeing unexpected charges on your card following your latest subscription service or free trial period, you’re...more
Payment service providers should take note of an expansive new rule proposed by the Federal Trade Commission (FTC) intended to protect consumer shoppers of goods and services sold on a subscription basis. For merchants...more
Mornings for advertising lawyers usually start slow – coffee in one hand and phone in the other while we glance at emails. Imagine our surprise the other morning when we saw that the Federal Trade Commission (FTC) had issued...more
Last week, the Federal Trade Commission announced that its proposed rule replacing its Prenotification Negative Option Rule would result in new, expansive requirements for all forms of negative option offers, including...more
Yesterday, the Federal Trade Commission (FTC or Commission) announced a proposed update to its rules governing automatic renewals. If adopted, the revised rules would enhance the FTC’s authority to prosecute companies—as well...more
Rihanna’s Savage X Fenty is an online subscription service that sells women’s lingerie. Like many other subscription services, they have faced scrutiny over how they advertise automatic renewals. In February 2020, Tina.org...more
On November 3, 2022, the Federal Trade Commission (FTC) announced a $100 million settlement with Vonage, a provider of Voice over Internet Protocol (VoIP) services to residences and small businesses. The FTC alleges that...more