In brief If you sell goods and services to consumers through automatically renewing payment plans, free or discounted trials that convert into full plans, or other “negative option features” that interpret a consumer’s silence as permission to keep charging them (collectively, “recurring subscriptions”), you should monitor and consider submitting comments on the Federal Trade Commission’s (“FTC’s”) proposed Negative Option Rule. The proposed rule would impose detailed transparency, consent, simple cancellation and annual reminder requirements on companies…
The Federal Trade Commission (“FTC”) continues to bring enforcement actions against companies that engage in false advertising and deceptively enrolling consumers in ongoing sales plans without express informed consent – a practice known as “negative option” marketing.On October 24, 2018, the FTC announced that a federal district court in California temporarily enjoined three defendants and the companies they controlled from enrolling consumers in any ongoing sales plan without the consumer’s express informed consent. A negative…
The Federal Trade Commission (“FTC”) announced that it has updated its COPPA Compliance Plan to specifically cover toys intended for children. COPPA requires website operators and online services to obtain verifiable parental consent before collecting any personal information from children 12 years or younger. The FTC’s updated guidance, however, clarifies that certain web-enabled products directed to children under 13 with “Internet of Things” functionality may also be subject to COPPA. “Internet of Things” devices can include…