March 03, 2022

10 Key Questions on Auto-Renewal Laws After Fitness App Suit

Business litigation partner Mike Daly and associates Matthew Adler, John Cappel and Michael Jaeger coauthored an article for Law360 outlining 10 critical legal practice questions that every business should ask about automatic renewal laws (ARLs).

The authors describe a case where a weight-loss app developer reached a settlement to end putative New York federal court class claims over ARLs. They then outline the following questions for companies to ask regarding their disclosures and practices:

  1. What laws might apply to us?
  2. Are we governed by an ARL?
  3. Are our disclosures adequate?
  4. Are we obtaining consumers’ consent?
  5. Are we providing compliant confirmations?
  6. Are we reminding customers about renewals?
  7. Are our cancellation procedures adequate?
  8. Are we notifying customers of changes?
  9. What are the risks of noncompliance?
  10. Should we try to comply with every ARL?

The authors also explain how businesses that offer the automatically renewing provision of goods or services would be well advised to stress-test their disclosures and practices — not only before but also after the point of sale — to ensure compliance with the ever-increasing number of ARLs.

The full article is available for Law360 subscribers.

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