negative option billing

renewal law

Compliance with California’s Continuity Laws

Over the past several years, consumer spending on subscription services has reached an all-time high. To further regulate the industry, California made significant changes to its Automatic Renewal Law (“ARL”). The ARL imposes substantial information, notice, and consent requirements on businesses that offer continuous service plans to California consumers. The most recent amendment became law […]

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FTC Guidelines on Negative Option Marketing Released - Klein Moynihan Turco LLP

FTC Guidelines on Negative Option Marketing Released

On October 22, 2021, the Federal Trade Commission (“FTC”) published an enforcement policy statement on negative option marketing. Soon thereafter, on October 28, 2021, the FTC issued a press release explaining that its guidelines are meant to serve as a warning to businesses against employing deceptive sign-up tactics and/or illegal dark patterns that trap consumers

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negative option

FTC Sues Negative Option Marketers

On May 13, 2020, the Federal Trade Commission filed a complaint in the Eastern District of Pennsylvania against American Future Systems, Inc. (“AFS”), a Pennsylvania-based telemarketing company, and its alleged co-conspirator, International Credit Recovery, Inc. (“ICR”) (AFS and ICR, collectively, “Defendants”), for conspiring to bilk businesses into paying for publications that they never ordered. Pursuant

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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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Skincare Product Marketer’s Continuity Billing Draws FTC Scrutiny

March 4, 2019 Beauty product marketer, F9 Advertising, LLC, several related entities, and their individual owner, have been sued by the Federal Trade Commission (“FTC”) for allegedly fraudulent continuity billing practices.   The FTC alleges that the non-compliant continuity billing practices and related marketing violate the Restore Online Shoppers’ Confidence Act (“ROSCA”). How do the entities’

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FTC Settles Negative Option Lawsuit

April 18, 2018 The Federal Trade Commission (“FTC”) entered into a settlement agreement this week with dozens of related entities and their individual owners in connection with a negative option marketing operation.  The FTC had commenced a lawsuit against the parties alleging that the individual owners operated nearly sixty (60) companies that sold personal care

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