The Bottom Line Negative option sellers should review their practices (including website flows, consent disclosures, and cancellation methods) to ensure compliance with this updated guidance.Most importantly, companies should determine whether the consumer consent being obtained is consistent Continue Reading
Subscription-Based Marketers Should Prepare for NY’s New Automatic Renewal Law
The Bottom Line The New York Automatic Renewal Law (ARL) has arrived, and it covers B2C subscription contracts.Marketers offering New York consumers goods or services on a subscription or automatic renewal basis should review their negative option/auto-renewal program practices to ensure Continue Reading
FTC Action Regarding Violations of the Restore Online Shoppers’ Confidence Act and Deceptive Commercial Practices Results in $10 Million Dollar Settlement
The Bottom Line The FTC has made it clear that it will not tolerate deceptive negative option and billing practices and will enforce heavy penalties on companies that do not comply with the law.Marketing practices for online subscriptions services need to be transparent and truthful. Consumers must Continue Reading
E-Tailers Beware: Regulators Are Drilling Down on Negative Option Marketing
7th Edition: Trends in Marketing Communications Law If you look at your credit card statements, chances are that you have one or more recurring monthly or annual charges, whether for media subscriptions, meal delivery services, workout apps, cosmetics shipments or clothing rentals. Subscription Continue Reading
Key Considerations for Retailers in the Face of COVID-19
The Bottom Line Retailers may be rushing to adapt to the new normal and embrace an e-commerce model, but there are still a myriad of legal issues to navigate.As the world of “e-tail” becomes king — at least for now — it is more important than ever to thoroughly understand the implications of new Continue Reading
The FTC is Drilling Down on Negative Option Marketing Practices
The Bottom Line While the FTC’s action against Match plays out in court, it is worth noting that the FTC last initiated a regulatory review of the Negative Option Rule over a decade ago in 2009. When the FTC completed that review in 2014, it concluded that amendments were not warranted because the Continue Reading
Battling the Real “Fake News”: FTC Reaches Multi-Million Dollar Settlement with Internet Marketers for False Celebrity Endorsements
The Bottom Line The FTC's settlement with the Defendants allegedly engaged in these deceptive marketing practices serves as a reminder that the parties responsible for online advertising using public figures’ names and images without authorization can be identified and stopped, and that those Continue Reading
FTC Settles with Mobile App Developer Over Unauthorized Charges
The Bottom Line The Pact case demonstrates that marketers can incur liability even when consumers affirmatively agree to be charged on a recurring basis. Unlike other negative option cases, there is no allegation here that consumers did not knowingly enter into a continuity plan – on the contrary, Continue Reading
FTC Charges Online Negative Option Marketing Scheme with Deceiving Shoppers
The Bottom Line The FTC’s complaint, and the district court’s response, highlight the continuing regulatory scrutiny into negative option marketing practices and the importance of disclosing the material terms of an offer in a clear and conspicuous manner to consumers before they pay or incur a Continue Reading