Automatic Renewal State Laws
A Practice Note that reviews the complex legal landscape of state automatic renewal laws governing subscription, membership, and other automatically renewing contracts. This Practice Note details the patchwork of state requirements and key federal regulations, such as the Restore Online Shoppers' Confidence Act (ROSCA) and rules enforced by the Federal Trade Commission (FTC). Using California's comprehensive law as a primary example, it outlines key compliance obligations for businesses, including providing clear and conspicuous disclosures, obtaining affirmative consent, sending renewal notices, and offering simple cancellation processes. The Practice Note also explores significant litigation, government enforcement actions, and the penalties for non-compliance.
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