News & Analysis as of

Subscription Services Enforcement Actions

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

Cooley LLP

FTC Continues Aggressive ROSCA Enforcement Agenda Against Negative Option Sellers

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In June 2024, the US Federal Trade Commission (FTC) and the Department of Justice jointly filed a complaint under the Restore Online Shoppers’ Confidence Act (ROSCA) in the US District Court for the Northern District of...more

Orrick, Herrington & Sutcliffe LLP

FTC refers ROSCA case against software company and executives to DOJ

On June 17, the FTC announced an enforcement action against a software company and two of its executives for its practices related to its subscription model. According to the redacted complaint filed by the DOJ (upon referral...more

Ballard Spahr LLP

The Iliad Flows: Federal Judge Allows FTC “Dark Patterns” Suit Against Amazon to Proceed

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In a lengthy ruling, a Seattle federal judge has allowed the Federal Trade Commission (FTC) to proceed with its groundbreaking case alleging that Amazon’s Prime online subscription marketing tactics constituted deceptive...more

Perkins Coie

Top Advertising Law Trends for 2024

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With the first quarter of 2024 in full swing, it is a good time for brands to revisit marketing compliance strategies to minimize the risk of potential class actions, regulatory enforcement actions, and competitor challenges....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

Holland & Knight LLP

The FTC Takes Action Against the Amazon Prime Program

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In this episode of his "Clearly Conspicuous" podcast series, "The FTC Takes Action Against the Amazon Prime Program," consumer protection attorney Anthony DiResta examines the recent actions that the Federal Trade Commission...more

Butler Snow LLP

How to Get Cancelled: An Overview of New Rules Affecting Businesses Offering Subscription Services to Tennessee Consumers

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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

Sheppard Mullin Richter & Hampton LLP

FTC Settles with Fintech for $18M over Deceptive Cash Transfers and Difficult-to-Cancel Memberships

On November 2, the FTC entered into a settlement agreement with a Manhattan-based fintech company for $18 million over alleged deceptively marketed cash advances to consumers and impeding customers’ ability to cancel...more

WilmerHale

FTC Targets "Dark Patterns" in Actions Against Amazon and Publishers Clearing House

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The Federal Trade Commission (FTC) in recent years has made clear its intention to adopt a more aggressive enforcement posture toward so-called dark patterns. The FTC defines unlawful dark patterns to include any online...more

Ballard Spahr LLP

FTC settles lawsuit against Publishers Clearing House involving alleged use of “dark patterns”

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Less than a week after announcing that it had filed a civil case against Amazon alleging that the company used “dark patterns” to enroll people in its Prime program, the FTC announced that it has entered into a settlement...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

Venable LLP

Is Your New Year’s Resolution to Comply with Automatic Renewal Laws? If So, Look No Further

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The law surrounding negative option and continuity programs continues to evolve rapidly. Feeling a bit overwhelmed with the latest developments? Below is what you need to know in light of new laws, new enforcement actions,...more

DarrowEverett LLP

The FTC is Turning the Lights On: Dark Patterns Aren't in the Shadows Anymore

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The continued growth and dominance of e-commerce has ushered in a new frontier for businesses. In response to the progressive evolution from brick-and-mortar marketplaces to the current e-commerce dominant landscape,...more

Venable LLP

Payment Processors: Are You Prepared to Uncover "Dark Patterns"?

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Risk management personnel who underwrite e-commerce merchants should have some basic understanding of the types of online merchant marketing and sales practices that are deceptive and misleading....more

The Volkov Law Group

Former MoviePass Executives Indicted for Securities Fraud

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The old adage — if it sounds too good to be true, then it probably isn’t — still rings true when it comes to MoviePass, which ultimately resulted in a criminal indictment charging two former executives with securities fraud....more

Troutman Pepper

Washington AG Surveys Consumers About Auto-Renewal Subscription Services With Enforcement Actions Likely to Follow

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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

BakerHostetler

AD-ttorneys@law - September 2022 #2

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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

Pillsbury Winthrop Shaw Pittman LLP

Key Changes to California’s Automatic Renewal Law Are Now in Effect

Businesses offering subscription services or other automatically renewing agreements to California consumers must adhere to new notice and cancellation requirements or face the risk of significant liability. Businesses...more

Venable LLP

How Negative Option Marketing Can Risk Entangling Third-Party Banks and Payment Processors

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We frequently post about negative option marketing in this blog, but our focus has been the FTC’s enforcement actions against businesses that utilize this marketing strategy. We haven’t written as much about a different risk:...more

Manatt, Phelps & Phillips, LLP

FTC and DOJ Reach Settlement Banning Background Search Website From Negative Option Marketing

The Federal Trade Commission (FTC) and the Department of Justice (DOJ) reached a settlement with MyLife.com, Inc., an online seller of consumer background reports, which bans MyLife from engaging in deceptive negative option...more

Venable LLP

[Webinar] New Laws and Requirements for Automatic Renewal Programs: What Businesses Need to Know in 2022 - February 23rd, 2:00 pm...

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The laws and rules governing automatic renewal programs continue to change on a regular basis. Over the past year, the Federal Trade Commission has announced a number of settlements and lawsuits enforcing the federal Restore...more

Wiley Rein LLP

Wiley Consumer Protection Download (January 10, 2022)

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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory...more

Perkins Coie

Ad Law Resolutions for 2022

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‘Tis the season for retailers to set best practices to avoid class actions, regulatory enforcement actions, and competitor claims. Ring in the new year with these top five U.S. advertising and marketing law takeaways. 1....more

International Lawyers Network

FTC To Focus on Subscription Services — Hints at Taking Action Against “Dark Patterns”

The FTC has issued a new Enforcement Policy Statement Regarding Negative Option Marketing (Policy Statement), generally warning companies about their compliance obligations relating to negative option programs and against...more

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