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
FTC Targets Weight-Loss Membership Program
In July, the Federal Trade Commission (“FTC”) announced that telemedicine company NextMed agreed to pay $150,000 to settle charges that it deceptively advertised its GLP-1 weight-loss membership programs to consumers. The FTC’s complaint alleged a host of deceptive practices under Sections 5 and 12 of the FTC Act, including making unsubstantiated weight-loss claims, disseminating fake testimonials and consumer reviews, failing to adequately disclose the terms of its memberships, and purposefully making it difficult for consumers to cancel their memberships.Continue Reading FTC Targets Weight-Loss Membership Program
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 Challenges Deceptive Artificial Intelligence Claims
In September, FTC Chairman Andrew Ferguson called for the FTC to regulate artificial intelligence claims through its existing consumer protection authorities: “Imposing comprehensive regulations at the incipiency of a potential technological revolution would be foolish. For now, we should limit ourselves to enforcing existing laws against illegal conduct when it involves AI no differently than when it does not.” Two recently announced enforcement actions involving artificial intelligence underscore the new FTC leadership’s commitment to evaluate AI claims under traditional deception frameworks. Continue Reading FTC Challenges Deceptive Artificial Intelligence Claims
FTC Proposes to Rewrite Negative Option Rule with Expansive Notice of Proposed Rulemaking
On March 23, the Federal Trade Commission (“FTC”) announced a notice of proposed rulemaking that would significantly revise the legal framework governing automatically renewing subscriptions. The proposal would amend the FTC’s existing Negative Option Rule to provide specific disclosure, consent, and cancellation requirements applicable to all negative options in all media. The Rule would formalize many of the guidelines from the FTC’s October 2021 Enforcement Policy Statement Regarding Negative Option Marketing (“Policy Statement”) and incorporate new requirements not previously addressed at the federal level such as renewal reminders. Continue Reading FTC Proposes to Rewrite Negative Option Rule with Expansive Notice of Proposed Rulemaking
FTC Relies on ROSCA and Notices of Penalty Offenses to Police Deceptive Conduct in Settlement with WealthPress
On January 13, the FTC announced a settlement with WealthPress, an online service provider that recommends trades in financial markets. The settlement resolved allegations that WealthPress violated both the Restore Online Shoppers’ Confidence Act (ROSCA) and Section 5 by making false and misleading claims about how much consumers could earn with the company’s trading recommendation services. The action is noteworthy for two reasons. First, building upon the FTC’s prior MoviePass settlement, the FTC’s ROSCA allegations focus not on the terms of the subscription service offered, but rather on the failure to clearly disclose material information about the company’s services. Second, this is the FTC’s first settlement imposing civil penalties for alleged earnings claims violations predicated upon a Notice of Penalty Offenses issued in October 2021. The settlement provides for $1.3 million in consumer redress, $500,000 in civil penalties, and injunctive relief.Continue Reading FTC Relies on ROSCA and Notices of Penalty Offenses to Police Deceptive Conduct in Settlement with WealthPress