A Variety of Fees and Surcharges Implicated in Early Cases Enforcing California's Honest Pricing Law
Since July 1, when California's "Honest Pricing Law" or "Hidden Fees Statute" became effective, the plaintiffs' bar has filed more than a dozen complaints alleging violations of the statute. These complaints challenge alleged "junk fees" or "drip pricing" structures, including "service fees" charged by merchants through their websites, "processing fees" charged by third-party platforms, and various forms of credit card surcharges and debit card fees.
Listen to Venable’s Ad Law Tool Kit Show Podcast – "Negative Option Marketing: Part 2"
The first episode of Venable’s Ad Law Tool Kit Show, Season 2, is now available. Listen to "Negative Option Marketing: Part 2" here, or search for it in your favorite podcast player.
Negative option marketing can include pre-notification negative option plans, continuity programs, automatic renewals, and free-to-pay conversions. This marketing strategy continues to invite scrutiny from the Federal Trade Commission (FTC), state attorneys general, and class action plaintiffs.
California Amends Autorenewal Law, with Stricter Consent Requirements and a “One Save” Rule: Fast VAST Update
This week, California amended its automatic renewal and continuous service offer law (ARL). Key provisions include the addition of “free-to-pay conversions,” consent obligations, misrepresentation prohibitions, request for cancellation procedures, price change notifications, and reminder and recordkeeping requirements. The new law takes effect July 1, 2025.
As FTC Begins Grappling with AI Issues, “Sweep” Signals Differing Approaches Among Commissioners
The Federal Trade Commission (FTC) announced a “sweep” targeting AI-related conduct this week. The cases provide insight into how the agency may approach AI-related issues going forward and illustrate differences among the agency’s commissioners in how to approach issues raised by AI.