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Advertising Law Blog

The Advertising Law Blog provides commentary and news on developing legal issues in advertising, promotional marketing, Internet, and privacy law. This blog is sponsored by the Advertising, Marketing & Promotions group at Olshan. The practice is geared to servicing the needs of the advertising, promotional marketing, and digital industries with a commitment to providing personal, efficient and effective legal service.

Showing 12 posts in Automatic Renewal.

The New York Times Accused Of Violating California Subscription Renewal Law

Class-action lawsuit seeks recovery of fees obtained through subscription renewal plan. Read More ›

Vermont Updates Privacy Law, Including Revisions to Automatic Renewal Online Cancellation Provisions

Vermont, which already has one of the most unique automatic renewal laws on the books, has further increased the compliance obligations for sellers utilizing continuity arrangements. On March 5, 2020, Governor Phil Scott signed Vermont Senate Bill 110 into effect. This new law primarily tackles issues surrounding privacy, but also updates Vermont’s automatic renewal provisions to bring cancellation of consumer contracts in line with California’s online requirements. The law goes into effect on July 1, 2020. Read More ›

Federal ‘Unsubscribe Act’ Introduced to Regulate Negative Option Agreements

In the wake of several state-enacted regulations and restrictions on automatic renewal provisions in consumer contracts, on May 10, 2019, Rep. Mark Takano (D-Calif.) introduced the federal Unsubscribe Act of 2019, H.R. 2683, to increase consumer protection with respect to online negative option agreements.  Negative option agreements include by definition automatic renewal contracts, continuity plan contracts and free-to-pay conversion contracts. Read More ›

North Dakota Introduces Automatic Renewal Law – Prohibits Renewal Periods Exceeding Twelve Months in Consumer Contracts

Following other states that have recently enacted regulations and additional restrictions on automatic renewal provisions in consumer contracts, on April 9, 2019, North Dakota House Bill 1195, which enacts a new chapter of the North Dakota Century Code relating to certain marketing practices involving automatic renewal, was signed by Governor Doug Burgum and filed with the Secretary of State. Read More ›

DC Enacts Automatic Renewal Law

As we have discussed in previous blog posts, subscription-based business models and the automatic renewal techniques they popularly employ have garnered attention from regulators in recent years. The District of Columbia has now passed its own law regulating automatic renewals. With the passage of this law, D.C. joins many other states in requiring specific disclosures from advertisers who utilize automatic renewals as an integral part of their business model.  The law has provisions similar to those in certain states, but also has important timing requirements. Read More ›

Guthy-Renker Reaches CART Automatic Renewal Lawsuit

Reflecting California’s continuing challenge to automatic renewal programs, direct marketing firm, Guthy-Renker, agreed to settle claims brought by multiple California city and district attorneys (CART) alleging that the direct marketing firm engaged in improper automatic renewal practices with respect to its sale of ProActiv skin products and Wen hair products. Read More ›

California Federal Court Approves Settlement in Automatic Renewal Case

Many online ecommerce companies operate on a subscription model.  Such companies need to be cognizant of federal and state laws governing advertising and enrollment in continuous service plans.   The failure to consider particular state requirements can have significant consequences given the aggressive plaintiffs’ bar.  A recent federal-court approved settlement between Yahoo Inc. and users of Rivals.com highlights this exposure.   Read More ›

Vermont Becomes First State to Require Onerous “Double Opt-In” with Respect to Automatic Renewal Provisions

Following up on other states recently enacting additional restrictions on automatic renewal provisions, on May 28, 2018, Vermont House Bill 593, an omnibus consumer protection bill, was allowed to go into effect without the signature of Governor Phil Scott, making Vermont the first state to require a “double opt-in” with respect to automatic renewal provisions. Read More ›

Leading Internet Case Law Publishes Article by Andrew Lustigman on California’s Auto-Renewal Laws

Andrew Lustigman published an article in Leading Internet Case Law entitled “eHarmony Settlement Illustrates Changes Required in E-Commerce Subscriptions Programs.” Read More ›

Review Your Enrollment Processes Now: California Enhances Its Automatic Renewal Statute

Many marketers rely on advance consent auto-renewal programs, particularly for online subscription sign-ups.   In the wake of the booming subscription-based business model and a rise in class action filings under state automatic renewal laws, many states are enacting or updating their laws to strengthen consumer protection.  California’s recently enacted Senate Bill 313 enhances what was already one of the most stringent auto-renewal laws in the nation. Read More ›

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