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The FTC has just proposed sweeping revisions to the Negative Option Rule that could significantly update the rule to govern negative option offers (i.e., automatic renewal, free trial and subscription plans) in all forms of media. In addition, as individual states continue to pass new laws, class action attorneys and regulators such as the California Autorenewal Task Force continue to aggressively enforce these laws. To fan the fire, the FTC is continuing to expand its ability to seek significant civil penalties and consumer redress in the event of noncompliance. With state and federal regulators alike hyper-focused on the subscription economy, now is the time for e-commerce sellers, telemarketers and direct mail marketers to audit their subscription and compliance practices.
Faculty will discuss the key proposed changes to be aware of, including:
- An overview of the existing regulatory landscape under federal and state laws, a summary of the notice of proposed rulemaking, and guidance on how the proposed federal updates interact with state law (15 minutes)
- Guidance concerning how to make the appropriate automatic renewal disclosures clearly and conspicuously, how to obtain “express informed consent” and what level of consent is needed under the proposed laws (15 minutes)
- A deep dive into the FTC’s proposed “one click cancellation” and “mirror cancellation rule,” including how to handle upsells and consumer “saves” (15 minutes)
- The proposed updates to renewal and reminder notice requirements, and next steps for companies in the subscription space (15 minutes)
Paavana L. Kumar