negative option marketing Archives - Klein Moynihan Turco

Compliance with California’s Continuity Laws

Blog, Online Marketing & Advertising Law / David Klein

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

Blog, Online Marketing & Advertising Law / David Klein

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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FTC Obtains $10M Settlement for Negative Option Marketing

Online Marketing & Advertising Law / David Klein

On September 1, 2020, Age of Learning Inc., d/b/a ABCmouse (“ABCmouse”), agreed to pay $10 million to settle an enforcement action brought by the Federal Trade Commission (“FTC”) for engaging in alleged illegal marketing and billing practices. According to the FTC, ABCmouse, which operates a membership-based online learning tool for children, enrolled unsuspecting consumers in

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FTC Sues Negative Option Marketers

Blog, Online Marketing & Advertising Law / David Klein

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 Calls for Public Comment on Negative Option Marketing

Blog, Data & Privacy Law, Internet Law, Journal, Online Marketing & Advertising Law, Telemarketing Law / David Klein

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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