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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Commercial Law

Date & Time
  • event Date

    Tuesday, December 12, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$297.00
CLE
ALL

This CLE webinar will discuss the FTC's proposed sweeping amendments governing negative option (also known as automatic renewal) plans, continuous contracts, and free (or discounted) trials. The panel will discuss the scope of these proposed new amendments as well as state laws relating to negative option requirements and the legal obligations and risks businesses need to be aware of going forward to avoid FTC and state scrutiny.

Faculty

Michael Jaeger
Counsel
Mayer Brown LLP

Mr. Jaeger represents clients in class actions and complex litigation in state and federal courts across the country with a particular focus on privacy and consumer protection defense. He also counsels clients on compliance and litigation avoidance in the areas of privacy and data protection, online terms and conditions, arbitration provisions, class action waivers, and automatic renewal/continuing subscription programs, is the author of Practical Law’s guidance on state automatic renewal laws, and is a part of the Uniform Law Commission’s Recurring Service Charges Drafting Committee.

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Paul L. Singer
Partner
Kelley Drye & Warren LLP

Mr. Singer spent over two decades in the Texas Attorney General’s office, spearheading its consumer protection, advertising and marketing, public health, and data protection efforts. He leverages the insights he gained, relationships he developed, and trust he earned in that role to help companies in various industries protect their legal, business, and reputational interests when they find themselves under government scrutiny. Mr. Singer defending clients in state-level investigations and enforcement actions, providing comprehensive compliance counsel, and advancing their interests through persuasive policy advocacy on consumer protection matters. His extensive knowledge and experience have made him a requested and frequent speaker at national seminars and trainings on a variety of technology, privacy, and general consumer protection topics. 

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Description

Over the last few years, several states have passed new automatic renewal laws (ARLs) that regulate continuing or renewing contracts. Other states have likewise amended existing ARLs to add detailed restrictions and requirements.

In line with the activity at the state level, earlier this year, the FTC released a notice of proposed rulemaking to overhaul the agency's rule regarding negative option plans--contracts and subscriptions for goods and services that automatically renew if the consumer takes no action. The proposed rule would prohibit certain types of misrepresentations, require certain disclosures and affirmative consent, and require an easy means of cancellation, with very limited opportunities for companies to save the transaction.

Violations of the proposed new rule would allow the FTC to seek consumer redress and civil monetary penalties of more than $50,000 per violation.

Based on the state ARLs already in place and the FTC's proposed new rule, companies that sell products or services using negative options should conduct a review of their disclosures, contract terms, consent processes, cancellation procedures, and the like to prepare for these new amendments and to mitigate the risk of FTC or state scrutiny.

Listen as our authoritative panel discusses state ARLs and the FTC's proposed new rule and what they mean for businesses that use negative option terms in their contracts.

Outline

  1. Overview of state ARLs
  2. Overview of the FTC's proposed new rule
  3. Scope and applicability of the FTC's proposed rule
    1. Consumer contracts
    2. Business-to-business contracts
  4. Key provisions of state ARLs and the FTC's proposed new rule
    1. Clear and conspicuous material disclosures
    2. Consent
    3. Renewal reminders
    4. Cancellation
    5. Misrepresentation
    6. Enforcement
  5. Penalties for violations of the FTC's proposed new rule
  6. Actions businesses should take now in light of the increased scrutiny on automatic renewal contracts
  7. Key takeaways

Benefits

The panel will review these and other key issues:

  • What are the key provisions of automatic renewal requirements and the FTC's proposed new amendments?
  • Will the FTC's proposed new rule preempt state laws relating to negative option requirements?
  • How will the FTC's proposed new rule impact consumer and business-to-business transactions?
  • What should businesses do now in light of the new amendments and the increased scrutiny of automatic renewal contracts?