Autorenewal programs ‘continue’ to garner scrutinyPDF
Adam's article "Autorenewal programs ‘continue’ to garner scrutiny" was published in Inside Counsel on February 3, 2015.
From the article:
Companies that offer goods and services that have a continuing need typically seek consumers’ advance consent to continue sending product or make services available on an ongoing basis until the consumer says “stop.” While advance consent offers meet ongoing consumer need and are permissible assuming appropriate disclosures and confirmation are provided, they are not without risk. Given recent regulatory actions and changing legislation, marketers need to carefully review their advance consent offers to ensure proper disclosures and notices are provided. As many of the requirements are established under varying state law, it is important to review applicable state requirements, in addition to federal regulations.
Recent regulatory enforcement
Advance consent offers allow consumers to receive products and services on an ongoing basis without the inconvenience of reordering or renewing. A proper order is one in which consumers understand and affirmatively agree to clearly and conspicuously disclosed terms of an auto renewal program. Terms should include the length of the enrollment period, the cost, how renewal will occur, and how to cancel. Consumers should receive a confirmation of the terms and under certain circumstances, a reminder prior to renewal.