All Topics

Contact Us



Andrew Lustigman and Morgan Spina Publish Article in the New York Law Journal on FTC’s Proposed New Rules for Businesses Selling Subscriptions Heighten Compliance Obligations

FTC’s Proposed New Rules for Businesses Selling Subscriptions Heighten Compliance Obligations, published in The New York Law Journal

The New York Law Journal published an article on April 13, 2023 authored by Olshan partner, Chair of the firm's Advertising, Marketing and Promotion's Practice and Co-Chair of the Brand Management & Protection Practice Andrew Lustigman and associate Morgan Spina entitled "FTC's Proposed New Rules for Businesses Selling Subscriptions Heighten Compliance Obligations." The Federal Trade Commission (FTC) recently proposed a new rule amending its Negative Option Rule. The rule aims to create additional requirements for companies using subscriptions, automatic renewals, and similar programs to sell their goods and services. As a result, the new proposed rule has garnered significant attention from marketers, businesses, lawyers, and commentators. This is an effort by FTC to update the original rule, which was first implemented in 1973. Andy and Morgan provide details on the implications of the proposed rule. While they see the feedback that the “click to cancel” aspect is receiving as “duly warranted and appropriate,” they draw attention to how the rule would interact with varying state laws. “The Proposed Rule purports to resolve the ‘patchwork of laws and regulations,’ both on the federal and state levels, that currently apply to businesses operating in negative option or subscription space,” they write. “Unfortunately, the Proposed Rule would not supersede, alter, or affect any state laws, except to the extent there is an inconsistency. Further, a state statute would not be inconsistent if it provided greater protection to the consumer than the Proposed Rule.”

To read the full article, click here (subscriber-based).

Andrew Lustigman

Andrew B. Lustigman represents marketers, advertisers, agencies and suppliers in connection with the legal aspects of their advertising and promotional marketing businesses. According to Chambers USA, Andrew was cited by clients as "pragmatic and always looking for solutions that meet a specific client's needs."

View Andrew’s Blog Posts
Morgan Spina

Morgan is a part of Olshan’s Brand Management and Protection practice and participates in all facets of the firm’s brand management, including privacy, advertising and intellectual property matters. She received her LL.M. from Brooklyn Law School and holds a B.A., with Distinction, in History and English Literature and a LL.B from University of Wollongong in Australia.

View Morgan’s Blog Posts
Back to Page