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
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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