On December 22, the Federal Trade Commission (“FTC”) issued an order setting aside its 2024 final consent order against Rytr, LLC (“Rytr”) on the grounds that the facts alleged in the Rytr complaint did not violate Section 5. The Commission further found that the Rytr order did not provide any
Continue Reading FTC Sets Aside Rytr Final Order Pursuant to White House AI Action Plan
FTC Issues Warning Letters for Violations of Consumer Reviews Rule
The Federal Trade Commission (FTC) sent letters to 10 companies—whose identities were not publicly disclosed—on December 22, 2025, warning them about potential violations of the Consumer Reviews Rule. The Rule, which took effect in October 2024, targets deceptive online review and testimonial practices. These warning letters mark the FTC’s first
Continue Reading FTC Issues Warning Letters for Violations of Consumer Reviews RuleFTC Sues LA Fitness Operators for Unfair Gym Cancellation Policies
On August 20, 2025, the Federal Trade Commission (“FTC”) sued Fitness International, LLC and Fitness & Sports Club LLC – the parent companies of LA Fitness and other gym chains – for violations of Section 5 of the FTC Act and the Restore Online Shoppers’ Confidence Act (“ROSCA”) in connection with alleged practices that make it difficult for their customers to cancel their gym memberships and other add-on services. The FTC seeks a court order prohibiting the allegedly unfair and unlawful conduct and restitution to consumers harmed by the difficulty in cancelling memberships.Continue Reading FTC Sues LA Fitness Operators for Unfair Gym Cancellation Policies
FTC Takes Aim at Online Lead Generator
On August 7, 2025, the Federal Trade Commission (“FTC”) announced a $45 million settlement with online lead generator MediaAlpha, Inc. and its subsidiary QuoteLab, LLC (collectively, “MediaAlpha”), resolving allegations that the companies misled consumers seeking health insurance products. According to the FTC, MediaAlpha tricked consumers into sharing sensitive personal information under the guise of offering health insurance options through their lead generation sites. MediaAlpha allegedly then used that data for abusive telemarketing, including calling numbers on the National Do Not Call Registry. The FTC also alleged that MediaAlpha auctioned off consumers’ information to third-party lead generators and telemarketers, who similarly used that data to make illegal telemarketing calls.Continue Reading FTC Takes Aim at Online Lead Generator
States Press Forward with Automatic Renewal Laws Amidst Vacating of the FTC’s Negative Option Rule
Autorenewal regulation has been a recent focus of both federal and state regulators. The U.S. Court of Appeals for the Eighth Circuit recently vacated the FTC’s Negative Option Rule on procedural grounds, but businesses need to remain vigilant of state regulatory requirements, including new ones that will take effect starting in September. Some of these regulations impose requirements similar to those in the FTC’s now-vacated rule. However, they also impose additional requirements, including regular subscription reminders and price increase notices. Below is a brief update on forthcoming requirements in Massachusetts, Connecticut, and New York that will impact subscription providers.Continue Reading States Press Forward with Automatic Renewal Laws Amidst Vacating of the FTC’s Negative Option Rule
Eighth Circuit Vacates FTC Negative Option Rule
On July 8, 2025, the Eighth Circuit issued a per curiam decision that vacated the FTC’s revised Negative Option Rule in its entirety. The opinion will become effective when the court issues its mandate, which should happen within seven weeks unless the FTC seeks further review.Continue Reading Eighth Circuit Vacates FTC Negative Option Rule
FTC Delays Negative Option Rule Compliance Date to July 14
On May 9, 2025, the FTC announced that it is deferring the compliance deadline for the Negative Option Rule by 60 days to July 14. This announcement came five days before the original compliance date for the majority of the Rule’s provisions. All three Commissioners voted in favor of the deferral.Continue Reading FTC Delays Negative Option Rule Compliance Date to July 14
FTC Issues Final “Click-to-Cancel” Rule
On October 16, the Federal Trade Commission (“FTC”) announced a final “click-to-cancel” rule that amends the previous Negative Option Rule to “make it as easy for consumers to cancel their enrollment as it was to sign up.” The Rule also imposes extensive requirements regarding misrepresentations, disclosures, and consent, among others. Most of the provisions will go into effect 180 days after publication in the Federal Register. As of today, the final rule has not yet been published. This final rule is the culmination of a five-year proceeding including the FTC’s issuance of a notice of proposed rulemaking (“NPRM”) in March 2023 and an advanced notice of proposed rulemaking in October 2019. We previously analyzed the proposed rule presented in the NPRM.Continue Reading FTC Issues Final “Click-to-Cancel” Rule
FTC Issues Final Rule on Reviews and Testimonials
On August 14, the FTC announced a final rule that, according to the FTC, is intended to “combat fake reviews and testimonials.” The rule will go into effect on October 21, 2024. This final rule is the culmination of the FTC’s issuance of an advance notice of proposed rulemaking (ANPRM)
Continue Reading FTC Issues Final Rule on Reviews and TestimonialsFTC Reaches Settlement with NGL Labs Over Children’s Privacy & AI
On July 9, 2024, the FTC and California Attorney General settled a case against NGL Labs (“NGL”) and two of its co-founders. NGL Labs’ app, “NGL: ask me anything,” allows users to receive anonymous messages from their friends and social media followers. The complaint alleged violations of the FTC Act, the Restore Online Shoppers’ Confidence Act (ROSCA), the Children’s Online Privacy Protection Act (COPPA), and California laws prohibiting deceptive advertising and prohibiting unfair and deceptive business practices.Continue Reading FTC Reaches Settlement with NGL Labs Over Children’s Privacy & AI