Forgot to Cancel? Pay Attention to Recent Auto-Renewal Law …

The FTC remains committed to bringing enforcement actions against allegedly unfair or deceptive auto-renewal offers, including those that employ so-called “dark patterns.”The many existing requirements of the California law continue to apply to a company that offers subscriptions to consumers. Effective July 1, 2022, a company that offers either (1) a subscription w...

FAQs about Forgot to Cancel? Pay Attention to Recent Auto-Renewal Law … Coupon?

What are automatic renewal state laws?

These laws cover contractual arrangements whereby a business continues to repeatedly charge a consumer based on the terms of an initial transaction. FTC and state terminology may differ, but these state laws and FTC enforcement cover the same general practices. This Note focuses on more broadly applicable automatic renewal state laws. ...

What is an automatic renewal offer?

A person that sells or offers to sell merchandise for a specified period under an agreement containing a provision for automatic renewal shall: (a) present the terms of the automatic renewal offer in a clear and conspicuous manner before a subscription or purchasing agreement is fulfilled and in proximity to the offer; ...

When does a contract automatically renew?

Sale or lease of products or services to a consumer where the contract automatically renews. If a renewal exceeds 60 days, the consumer must receive written notice of automatic renewal at least 15 days but no earlier than 45 days before the date of the automatic renewal. The notice must state: The date the contract will automatically renew. ...

Can automatic renewal laws be enforced?

There is also some variety among the states regarding how an automatic renewal law may be enforced. For example, it is generally considered established law in the Ninth Circuit that California’s automatic renewal law does not provide a private right of action (see Litigation and Settlements). ...

How do I make an automatic renewal offer?

A seller making the automatic renewal or continuous service offer must: (1) clearly and conspicuously state the terms of the automatic renewal provision in plain, unambiguous language in bold-face type; (2) require the consumer to affirmatively opt in to the automatic renewal provision in addition to accepting the contract; and ...

What are the requirements for automatic renewal?

Now many states have broadened the reach of their automatic renewal laws beyond specific contract types to consumer contracts more generally, and have implemented particular requirements regarding: Disclosures, consent, and cancellation. Transaction acknowledgments and renewal notices. ...