The Problematic Proliferation of Automatic Renewal Laws

Business litigation partner Mike Daly and associates Matthew Adler and John Cappel coauthored an article for the American Bar Association (ABA) detailing answers to 10 key questions every consumer-facing company should be asking about automatic renewal laws (ARLs).

The authors state that automatic renewals now accompany an astounding array of consumer goods and services, and just as automatic renewals have proliferated, so have efforts to regulate them. They provide an overview of ARLs by answering frequently asked questions, including:

1. What kinds of contracts are governed by ARLs?
2. What are “automatic renewal” and “continuous service” contracts?
3. What do ARLs generally require?
4. What are the potential consequences of violating an ARL?
5. Are there defenses for “good faith” attempts to comply?
6. Do any other laws regulate automatic renewals?
7. Are there any new ARLs?
8. Were there amendments to existing ARLs in 2021?
9. How are ARLs interpreted?
10. Is further ARL legislation anticipated?