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Corporate,
Administrative/Regulatory

Nov. 8, 2024

The massive change in FTC's 'click to cancel' rule and the state's updated law that nobody is discussing

Decisions by the FTC and California may open new avenues for challenging any advertising claims, with potentially multi-million-dollar business-ending implications for any company selling products on an autorenewal, continuous service, or negative option basis.

Shahin Rothermel

Partner, Venable LLP

Ari N. Rothman

Partner, Venable LLP

600 Massachusetts Avenue, N.W.
Washington , DC 20001

Email: anrothman@venable.com

Case Western Reserve Un SOL; Cleveland OH

Claudia A. Lewis

Partner, Venable LLP

600 Massachusetts Avenue, NW
Washington , DC 20001

Phone: (202) 344-4359

Email: calewis@Venable.com

Shutterstock

Many alerts and articles discussing the Federal Trade Commission's (FTC) updated Negative Option Rule and the Amendments to California's Automatic Renewal law have focused on the stricter consent and cancellation requirements. But very few have addressed the elephant in the room: the FTC's Rule and California law both provide new rights of action where companies could face multi-millions of dollars in liability for making allegedly false, unsubstantiated, or misleading claims...

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