FTC Announces Final "Click-to-Cancel" Rule on Negative Options, Autorenewals, Free-to-Pay, and Subscription Services
By a 3-2 vote, the Federal Trade Commission (FTC) announced its Final Negative Option Rule that covers negative option programs for both consumer and B2B transactions in any media, including online, telephone, print, and in-person. The rule finalizes many of the requirements we previewed last year. Commissioner Melissa Holyoak's dissent outlines many of the issues that those challenging the legality of the rule are likely to soon raise.
Listen to Episodes 2 and 3 of Venable's Ad Law Tool Kit Show Podcast – "Email Marketing in the Crosshairs" and "Drip Pricing"
Episode 2: For decades, email marketing has been an important tool that businesses use to reach customers. But in recent years, marketers have had to comply with an increasing number of laws enacted to protect a consumer’s privacy and address so-called spam.
Episode 3: In 2023, the Federal Trade Commission (FTC) identified two junk fees-related practices it wanted to regulate—omitting mandatory charges and fees from advertised prices and misrepresenting the nature and purpose of the charges or fees. States have been active as well. "Junk fees" or "drip pricing" would be replaced by the "total price," which businesses would be required to clearly disclose.
Medical Marijuana and Dewberry: The Supreme Court Tackles RICO and Lanham Act Claims
It's October and, in addition to playoff baseball, that means the Supreme Court is back in session. The Court has chosen to hear arguments in two cases with significant ramifications for advertising law. Both cases will impact the risks and liabilities faced by companies accused of false or misleading advertising practices nationwide.
Negative Option and Continuity Marketing: An Excerpt from the Advertising Law Tool Kit
The Federal Trade Commission (FTC), state attorneys general, and class action plaintiffs continue to scrutinize negative option and continuity offers. Negative option marketing can include pre-notification negative option plans, continuity programs, automatic renewals, and free-to-pay (or discounted price-to-pay) conversions.