How the FTC Is Stepping Up Subscription Enforcement
Consumer protection attorneys Brian Goodrich, Benjamin Genn and Ceijenia Cornelius co-authored a Law360 article analyzing how the Federal Trade Commission (FTC) has intensified subscription enforcement following the vacatur of its Click-to-Cancel Rule. Leveraging the Restore Online Shoppers' Confidence Act (ROSCA) and Section 5 of the FTC Act, the FTC is operationalizing "simple cancellation" and "clear, conspicuous disclosure" standards through high-profile settlements with Match, Chegg and Amazon. The authors detail how these cases have set benchmarks for parity between enrollment and cancellation, transparent pricing and renewal terms, and prohibitions on retaliatory conduct. The article offers practical guidance for brands on aligning auto-renewal practices with FTC expectations, monitoring evolving federal and state requirements and preparing for potential rulemaking in the months to come.
The authors also published a Holland & Knight alert on this topic.