News & Analysis as of

Consumer Contracts Contract Terms Automatic Renewals

Venable LLP

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

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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

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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

Cooley LLP

Government Reveals New Proposals for Incoming Subscription Contracts Regime Under DMCC Act

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In our last update on the Digital Markets Competition and Consumer Act (DMCC Act), we outlined some of the key consumer protection enhancements set to come into force in the UK. In particular, the DMCC Act sets out new rules...more

BCLP

California, FTC Lead Push To Add Autorenewal Requirements

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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

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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

California Updates Its Automatic Renewal Law (Again)

Automatic renewals continue to be a big priority for state regulators. When companies work to develop strategies to comply with the growing patchwork of specific state laws in this area, they often start by looking at...more

BCLP

The DMCCA: Taking a Closer Look at the Impact on Subscription Contracts

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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

Troutman Pepper Locke

Compliance Tips on State Automatic Renewal Contract Laws

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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

Venable LLP

Your 2024 Outlook: California’s Enforcement Trends and New State Laws Governing Automatic Renewal Programs

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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

Orrick, Herrington & Sutcliffe LLP

New York State enhances the consumer notification obligations on automatic renewals

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

Orrick, Herrington & Sutcliffe LLP

Connecticut implements measures for auto-renewals

On June 28, the Connecticut governor signed HB 5314 (the “Act”), enacting measures relating to automatic renewal offers and consumer agreements. The Act, among other things, includes newly defined terms such as “automatic...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

Kelley Drye & Warren LLP

Washington AG Signals Enforcement on Automatic Renewals

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Earlier this week, we posted that a plaintiff filed a proposed class action against the NFL over its automatic renewal practices. The complaint alleges that the NFL used “dark patterns” to enroll consumers in its NFL+...more

Kelley Drye & Warren LLP

NFL Hit with Automatic Renewal Lawsuit (and Hyperbole)

Kelley Drye & Warren LLP on

Last week, a plaintiff filed a proposed class action against the NFL over its automatic renewal practices. The plaintiff alleges that the company used deceptive practices to automatically subscribe its Game Pass users to a...more

Akerman LLP

Amendments to California’s Automatic Renewal Law Take Effect

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Amendments to California’s automatic renewal law (ARL) enacted in October 2021 go into effect today, July 1, 2022. The amendments add enhanced procedural requirements related to the cancellation of subscription-based products...more

Polsinelli

Subscription Service Businesses Take Notice: Amendments to California’s Automatic Renewal Law Are Here

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Subscription service providers should be aware of the various changes coming to California's automatic renewal law. California’s already stringent laws governing recurring subscription programs are about to become even more...more

Faegre Drinker Biddle & Reath LLP

Summer 2022 Automatic Renewal Law Update: Changes in California, Idaho, Tennessee, Florida and Virginia

The first half of 2022 saw significant activity affecting the state automatic renewal laws (ARLs) that regulate continuing or renewing contracts: • Lawsuits were filed against prominent companies such as Amazon and...more

Ballard Spahr LLP

Colorado’s New Auto-Renewal Law

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Businesses with automatic renewal contracts—including subscriptions—should take note of Colorado’s new law that went into effect earlier this year on January 1, 2022. While companies subject to other state’s auto-renewal...more

Venable LLP

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

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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

Kelley Drye & Warren LLP

Noom to Pay Over $60M to Cancel Automatic Renewal Suit

In several recent posts and a webinar, we’ve talked about how the FTC and state AGs are focusing on automatic renewals. A series of new laws and investigations show that this continues to be a hot topic for both lawmakers and...more

Davis Wright Tremaine LLP

Recurring Online Subscriptions Face a New Arbitration Standard in California

In a case of first impression, the California Court of Appeal, Fourth District (San Diego), considered "under what circumstances a 'sign-in wrap' agreement … is valid and enforceable" between consumers and online companies...more

Troutman Pepper Locke

Automatic Renewal State Law Changes Effective January 1, 2022

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Colorado and Delaware have enacted new laws for automatic renewal or negative options offers. The new laws became effective January 1, 2022. Illinois already has a law on the books related to automatic renewals but has...more

Fenwick & West LLP

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

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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

Kelley Drye & Warren LLP

California Updates its Automatic Renewal Law

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In 2017, California updated its automatic renewal law to create some of the strictest requirements in the country. Now, just four years later, the Governor Newsom signed a new law that will impose even stricter requirements....more

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