Earlier today, the FTC issued a policy statement warning marketers against using “dark patterns” to trick or trap consumers into subscription services. The statement is primarily intended to assist marketers by providing guidance on the FTC’s interpretation of existing law as it applies to various types of “negative option” programs, including automatic renewals, subscriptions, and
California Updates its Automatic Renewal Law
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.
- Requirements for Free Trials: If a program includes a free or discounted trial period of 31 days or more,
NY Passes Law Governing Automatic Renewals
In recent years, a number of states have passed laws governing automatic renewals. New York is the latest state to jump on this trend. Its current law only applies to certain contracts “for service, maintenance, or repair to or for any real or personal property.” The new law, which will become effective in February 2021,
FTC Announces $10 Million Settlement Over Automatic Renewals
We’ve written about automatic renewals before, but the $10 million price tag in the FTC’s settlement with the operators of ABCmouse should grab your attention.
The FTC alleged that over a three-year period, the company advertised membership programs without clearly disclosing that the programs would automatically renew at the end of the term. The automatic
Ancestry.com Faces $250M Auto-Renewal Suit
Subscription plans that automatically renew at the end of a term are becoming more popular with companies. They’re also getting more attention from regulators and class action attorneys. As we’ve discussed before, some states regulate how these plans can be structured, and there have been both lawsuits and regulatory investigations targeting companies that have
Ad Law Access Podcast: Automatic Renewal Plans
As we have discussed here on Ad Law Access, subscription plans that automatically renew at the end of a term have become more popular with companies and they’re also getting more scrutiny from regulators. On the latest episode of the Ad Law Access Podcast, partner Gonzalo Mon provides an update on some of
North Dakota Joins Other States Regulating Automatic Renewals
Earlier this year, we posted about new laws governing automatic renewals in DC and Vermont. Starting on July 31, 2019, companies also need to worry about a similar statute in North Dakota.
Under the new law, companies must generally (a) present the terms of the automatic renewal offer in a clear and conspicuous manner
Stringent Automatic Renewal Law Set to Go Into Effect in VT
On July 1, 2019, a new law governing automatic renewals will go into effect in Vermont. Although the law includes two provisions that are more stringent than those found in other state laws, the Vermont law is more limited in scope. It only applies to agreements with an initial term of one year or longer
DC Enacts Law Governing Automatic Renewals
Subscription plans that automatically renew at the end of a term are becoming more popular with companies. They’re also getting more scrutiny from regulators. As we’ve posted before, some states regulate how these plans can be structured, and there have been both lawsuits and regulatory investigations targeting companies that have failed to comply. This week,
eHarmony Agrees to Pay up to $2.2 Million to End Auto-Renewal Suit
Last week, eHarmony agreed to pay up to $2.2 million to resolve allegations brought by four California counties and the city of Santa Monica over the company’s billing practices. That includes a payment of $1.2 million in penalties and up to $1 million in restitution to customers whose subscriptions were automatically renewed, but were denied