New Year, New Rule: FTC to Review Updates to Negative Option Rule During January Informal Hearing
The FTC plans an informal hearing on Jan 16, 2024, to gather testimony on proposed updates to the Negative Option Rule. The rule expands coverage to subscriptions, introduces a "click to cancel" provision, mandates consumer consent for additional offers during cancellation, and requires annual reminders.
Do Your Website Terms and Conditions Violate California Law?
Recent class action lawsuits in California challenge companies' online terms, alleging violations of California Civil Code 1670.8, which prohibits contracts from waiving consumers' rights to make statements about sellers. Lawsuits target terms in Zillow, AvantStay, and others, highlighting potential legal risks for companies and the need to review terms.
Made in or Made up? The FTC Closely Reviews “Made in USA” Claims
The FTC filed a complaint against ExotoUSA LLC for deceptive "Made in the USA" claims, alleging false statements about veteran support and product origin. The proposed settlement imposes a $4 million judgment, emphasizing stringent criteria for legitimate U.S.-origin claims and required disclosures on foreign content.
Influencers on Notice: FTC Issues Warning Letters for Inadequate Disclosures
As the holiday season boosts social commerce and influencer marketing, the FTC issued warning letters to influencers for inadequate disclosures. The agency stressed clear and conspicuous disclosures, cautioning against reliance on platform tools and emphasizing potential penalties for non-compliance.