Automatic Renewal and Subscription Contracts: State Requirements, FTC Enforcement, Drafting Best Practices

This CLE webinar will navigate the shifting federal and state requirements for automatic renewal, subscription, and other negative option arrangements in contracts. The panel will discuss the impacts of the vacated FTC "Click-to-Cancel Rule," the nature of continuing federal enforcement, state automatic renewal laws, and best practices for drafting enrollment, renewal, notice, and cancellation terms.

Automatic renewal and subscription terms commonly surface in consumer and commercial contracts, but the rules for these arrangements continue to change. Which federal and state laws apply? What information must be disclosed? How should consent be obtained? Counsel must know these requirements and more, like when renewal or price-change notices must be provided and how customers must be allowed to cancel.

The FTC's 2024 Click-to-Cancel Rule was vacated in 2025, but federal enforcement of negative option practices continues. The FTC currently seeks commentary while considering changes to its Negative Option Rule. Meanwhile, it also continues to initiate enforcement actions on recurring charges, disclosures, consent, and cancellation practices. Furthermore, businesses that operate across multiple states must execute and comply with several differing state law regulatory frameworks.

Listen as our panel examines the current federal and state frameworks governing automatic renewal and subscription contracts. The panel will cover practical measures for drafting and reviewing renewal, notice, consent, and cancellation provisions.