Automatic Renewal Law

Venable's Autorenewal Solutions Team (VAST) guides clients through all phases of automatic renewal programs. As states continuously enact regulations on subscription services plans, Venable attorneys provide experienced counsel to help reduce the risk of investigations and litigation.

To achieve and maintain compliance with the complex laws governing autorenewal and subscription plans, companies offering these services need legal counsel with a long and successful track record in this space. Our nationally recognized Advertising and Marketing Group has long been at the forefront of this dynamic legal area. We resolved the Federal Trade Commission's (FTC) first case brought under the Restore Online Shoppers' Confidence Act (ROSCA) and have broad experience across the entire advertising and marketing landscape.

Compliance Assessments

Whether a company supplies consumers with meal box kits, weight loss subscriptions, digital news access, credit report monitoring, or streaming services, we ensure their compliance with the expanding web of regulations. Our attorneys excel at both pre-launch and post-launch counseling, reviewing the entire consumer experience. VAST tracks emerging laws in all 50 states, credit card brand rules, and class action lawsuits, analyzing for 360-degree risk exposure. We regularly review pre-landing content, including social media accounts, displays, emails, and texts. We then examine the full purchasing process, from landing pages to checkout pages and call scripts. In our post-purchase review, we consider customer care scripts and cancellation, refund, and return policies, with risk metrics top of mind, including internal and public complaints.

Litigation and Investigations

Venable attorneys are highly experienced in managing investigations and lawsuits involving the FTC and state attorneys general, as well as class action lawsuits and demands. We handle demand letters and litigation resolution and provide draft disclosures, feedback on creatives, consumer relations, policies and procedures, and complaint mitigation.

Experience
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Federal Trade Commission Experience

  • Resolved the first FTC investigation into alleged ROSCA violations
  • Resolved the first FTC ROSCA civil penalty inquiry
  • Defeated an FTC temporary restraining order and asset freeze
  • Successfully obtained closure of an FTC compliance inquiry
  • Successfully convinced the FTC to abandon ROSCA claims against a seller of background reports
  • Successfully convinced the FTC to abandon a Telemarketing Sales Rule compliance inquiry into a company that offered subscription products via telemarketing

State Regulatory Experience

  • Defended companies on state autorenewal laws before multiple state attorneys general, including in New York, Oregon, Pennsylvania, and Texas, who challenged subscription box services, news and media companies, dietary supplement sellers, and an events sign-up subscription program
  • Obtained closure on behalf of a national security systems company inquiry in Georgia with no action by the state attorney general
  • Obtained full closure of an investigation by the Nebraska state attorney general
  • Obtained full closure of an autorenewal element of inquiry in NevadaObtained full closure of an autorenewal lawsuit in Ohio
  • Obtained a favorable settlement for a nutritional supplement company targeted by the California Autorenewal Task Force
  • Defended companies targeted by the California Autorenewal Task Force in all verticals, including subscription box, consumer goods seller, and dietary supplement companies
  • Successfully resolved a Better Business Bureau (BBB) inquiry into a dietary supplement subscription program and achieved an A+ rating following the investigation

Class Action Lawsuits

  • Obtained dismissal of class action allegations that a subscription program violated the Electronic Funds Transfer Act
  • Successfully compelled arbitration in a Florida class action lawsuit challenging a subscription program and alleged hidden fees, in a matter of first impression
  • Obtained a favorable class action settlement resolving retroactive exposure in a lawsuit challenging an adult streaming content website
  • Successfully resolved multiple class action demands and obtained full walkaways from prolific class action plaintiffs' attorneys, including demands challenging cosmetic products, subscription box services, dietary supplements, and consumer goods

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