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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, January 14, 2025

  • 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 final “Click-to-Cancel” rule and its significant impact on subscriptions. The panel will explore the scope of this new rule, its requirements, and the legal obligations and risks businesses need to be aware of to ensure compliance and avoid FTC 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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Alexandra Remick
Associate
Covington & Burling

Ms. Remick is a member of the Advertising and Consumer Protection Investigations Group. Her practice focuses on regulatory and compliance matters related to consumer protection. Ms. Remick has experience advising clients on topics including endorsements, social media influencers, native advertising, automatically renewing subscriptions, consumer reviews, and claim substantiation in a variety of contexts. She frequently provides advice on specific advertising compliance questions and works with companies on developing internal advertising compliance policies. Ms. Remick has also represented multiple clients in FTC investigations involving consumer protection issues, has conducted regulatory due diligence on multiple transactions, and has drafted comments on multiple rulemakings.

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Description

On Oct. 16, 2024, the FTC finalized its Click-to-Cancel rule, which imposes a variety of requirements on sellers of goods or services with a so-called "negative option" feature under which the seller interprets a customer's silence or failure to affirmatively take action to cancel as acceptance of the offer. If upheld, the rule will significantly impact the sign-up and cancellation procedures for subscription services.

The new rule requires businesses to offer a cancellation mechanism that is as easy to use as the method the consumer used to subscribe. Businesses must also provide clear and conspicuous disclosures about the terms of the subscription, including how to find the cancellation mechanism, and obtain express informed consent from consumers before charging them.

Violations of the Click-to-Cancel rule can have significant consequences, including consumer redress and civil monetary penalties of more than $50,000 per violation. Companies that offer subscription-based services and contracts should review their current practices and procedures for compliance.

Listen as our expert panel delves into the details of the FTC's final Click-to-Cancel rule, its implications for businesses, and practical steps for compliance.

Outline

  1. Overview of Click-to-Cancel rule
    1. Impact of new administration
    2. Updates on legal challenges
    3. Relationship to state laws
  2. Scope and applicability of the rule
    1. Consumer contracts
    2. Business-to-business contracts
  3.  Key provisions of the rule (and comparison to state law requirements)
    1. Clear and conspicuous material disclosures
    2. Affirmative consent
    3. Confirmation/Acknowledgement
    4. Renewal reminders
    5. Notices of Material/Fee Changes
    6. Simplified cancellation process
    7. Misrepresentation prevention
    8. Enforcement mechanisms
  4. Penalties for violations of Click-to-Cancel
  5. Actions businesses should take now
    1. Reviewing and updating current practices
    2. Enhancing disclosure and consent processes
    3. Simplifying cancellation procedures
    4. Training staff on compliance requirements
  6. Key takeaways

Benefits

The panel will review these and other key issues:

  • Key provisions of the FTC's Click-to-Cancel rule
  • Whether Click-to-Cancel preempts more stringent state laws
  • Contractual obligations and compliance; ensuring clear disclosures, consent, and easy cancellation
  • Legal risks and penalties for noncompliance
  • Practical steps for businesses to align current practices with the new rule