CLIENT ALERT: FTC Proposes Changes to Automatic Renewal Rule, Including Online Cancellation Requirement

The Federal Trade Commission (“FTC”) has been interested in pursuing amendments to the Negative Option Rule for several years. In 2019, the FTC published an Advance Notice of Proposed Rulemaking (“ANPR”), soliciting public comment on certain issues related to negative options and automatic renewal contracts, including disclosures, consent, and cancellation. Following receipt of such comments, the FTC issued an Enforcement Policy Statement Regarding Negative Option Marketing in 2021. Now, in its latest and potentially most impactful effort, the FTC has issued a Notice of Proposed Rulemaking (“NPRM”), proposing several specific changes to the Negative Option Rule, as the existing rule was woefully out of date. Read More ›

Panera Faces Class Action Lawsuit Over Misleading Subscription Program

* Rachel Gold is a law clerk in the Corporate/Securities Law practice group.

Panera Bread Company (“Panera”) is facing a class action lawsuit that alleges its Unlimited Sip Club (“Club”) is in fact not so unlimited. According to Panera’s own promotional materials, the Club is a refill program where members pay $10.99 per month for access to lemonade, soda, coffee, and tea drinks of “any size” at “any time.” Read More ›

REMINDER: New California Automatic Renewal Law Set To Go Into Effect July 1, 2022

On July 1, 2022, California Assembly Bill 390 will take effect, adding new notice and cancellation requirements to California’s existing Automatic Renewal Law (“ARL”).  Read More ›

Weight Loss App Agrees to Pay $56 Million and Make Changes to Enrollment Process to Settle Automatic Renewal Class Action

Weight-loss app Noom has agreed to make substantial changes to its enrollment processes and pay $56 million, in addition to providing $6 million in subscription credits, in order to resolve a federal court case where the plaintiffs alleged that the company utilized deceptive automatic renewal tactics. Read More ›

Olshan Advertising and Branding Law Groups' Key Issues in 2022

Happy holidays! We hope you are safe and healthy. As we enter the new year, Olshan’s Advertising and Branding law groups shares their list of hot topics that look to be on the horizon for 2022. If you have any questions on these or other issues, please reach out to us.  Read More ›

Colorado Enacts New Automatic Renewal Law

On July 9, 2021, the Colorado Governor signed Colorado House Bill No. 1239 into law, resulting in Colorado becoming the latest state to enact new automatic renewal and cancellation procedures applicable to consumer sales contracts. In addition to addressing general automatic renewal contracts, the new Colorado law establishes certain requirements regarding the execution and enforcement of dating service contracts. Read More ›

NYSBA Inside Publishes Article by Lustigman and Spina on NY’s New Automatic Renewal Law

Olshan’s Advertising, Marketing & Promotions Practice Group chair Andrew Lustigman and associate Morgan Spina have authored an article published in NYSBA Inside entitled “Check Your Enrollment Path: New York Enacts Comprehensive Automatic Renewal Law.” Read More ›

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 ›