FTC

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

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

With the Trump administration’s renewed focus on American manufacturing, FTC Chairman Andrew N. Ferguson’s recent declaration that July 2025 is “Made in the USA” Month appears to signal a renewed emphasis on Made in USA enforcement.  The FTC has a long history of scrutinizing these claims and the more recently-issued Made in USA Rule sets strict compliance standards with the threat of significant monetary penalties for non-compliance.  And while Chairman Ferguson’s statement nods to the importance of preventing deception in this area, it emphasizes that advertisers should be making Made in USA claims whenever they are appropriate.Continue Reading FTC Declares July as “Made in the USA” Month

On July 23, the White House released its AI Action Plan, outlining the key priorities of the Trump Administration’s AI policy agenda.  In parallel, President Trump signed three AI executive orders directing the Executive Branch to implement the AI Action Plan’s policies on “Preventing Woke AI in…

Continue Reading Trump Administration Issues AI Action Plan and Series of AI Executive Orders

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

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

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

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

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 Testimonials

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