continuity plan

FTC Calls for Public Comment on Negative Option Marketing

September 30, 2019 On September 25, 2019, the Federal Trade Commission (“FTC” or “Commission”) published an Advance Notice of Proposed Rulemaking calling for public comment on the need to amend the current “Rule Concerning the Use of Prenotification Negative Option Plans” (the “Negative Option Rule” or “Rule”). Negative option marketing, where a consumer’s silence constitutes …

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FTC Settles Another Free Trial Law Investigation

June 6, 2019 Last week, the Federal Trade Commission (“FTC”) announced that it had settled a free product trial lawsuit brought against Triangle Media Corp., Jasper Rain Marketing LLC, Hardwire Interactive Inc., Global Northern Trading Ltd., Brian Phillips, and Devin Keer (collectively, “Defendants”). The FTC’s free trial law complaint and amended complaint both alleged that …

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Mastercard Free Trial Requirements

March 6, 2019  Last month, Mastercard Incorporated (“Mastercard”) announced an important change to its policies that will require merchants to provide specific automatic enrollment disclosures to consumers at the conclusion of all free-trial offers. The Mastercard free trial terms are intended to protect consumers from merchants that offer misleading “free to pay” conversions, continuity plans, …

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Automatic Renewal Law Awaiting Mayor Approval in Washington D.C.

January 17, 2019  Washington D.C. is in the process of enacting the Structured Settlements and Automatic Renewal Protections Act of 2018 (the “Act”). In part, the automatic renewal law Act would place new restrictions on businesses that sell goods or services to consumers pursuant to a contract that automatically renews. What are the key provisions …

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California Strengthens its Automatic Renewal Law

July 6, 2018  On July 1, 2018,  California Senate Bill No. 313 (the “Amended Law”) went into effect. The Amended Law revised Section 17602 of California’s Business and Professions code, requiring businesses to adapt to a stricter Automatic Renewal Law (“ARL”). After July 1, 2018, companies offering automatically renewing subscription services to California State customers …

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Online Lingerie Marketer Settles Negative Option Lawsuit With FTC

November 22, 2017 The Federal Trade Commission (“FTC”) has announced that online lingerie marketer AdoreMe, Inc. (“AdoreMe”) has settled claims alleging that its deceptive negative option enrollment and cancellation practices violated both Section 5 of the FTC Act and the Restore Online Shoppers’ Confidence Act.  The underlying complaint in the negative option lawsuit alleged improper …

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FTC Lawsuit Alleging Deceptive Marketing of “Free” Products and Continuity Plans Settles

September 18, 2017 The Federal Trade Commission (“FTC”) has announced that ten online marketers of cooking and golf-related products have agreed to settle claims alleging violations of the FTC Act and the Restore Online Shoppers’ Confidence Act, based on the marketers’ alleged improper use of two types of negative option offers:  (i) continuity plans, where …

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