FTC Subscription Order Creates Liability Woes: Venable

The FTC "click-to-cancel" rule and California's automatic renewal law amendments give the FTC and private plaintiffs new leverage in challenging advertising claims for any company selling products on an auto-renewal or continuous service basis, say Venable lawyers. Shahin Rothermel, Ari Rothman and Claudia Lewis blogged Tuesday that the additional leverage has "potentially business-ending implications" as the two provide new rights of action where companies could face millions of dollars in liability for allegedly false or misleading claims about products or services. However, multiple challenges of the FTC rule (see 2410240001) could delay its implementation date of 180 days after publication in the Federal Register, they said.