Market Intelligence

California online sellers are facing a wave of pre-suit demand letters alleging violations of the state's Honest Pricing Law, which prohibits advertising prices that exclude mandatory fees. These letters threaten class action lawsuits under the Consumers Legal Remedies Act unless businesses change their pricing practices and issue refunds. Understanding the law's requirements, available defenses, and strategic response options is critical for any business receiving such a demand.

Keeping with recent trends, lawmakers at the federal and local levels continue to introduce legislation that would expand consumer protection authority. New York City Mayor Zohran Mamdani recently announced the POWER Act, which is described as a first-in-the-nation bill that would make New York City’s consumer and worker protections the strongest in the country; and two members of Congress reintroduced bills that would empower the FTC to respond independently and swiftly to unfair and deceptive practices. Taken together, these proposals signal a continued push in the legislatures to expand consumer protection authorities.

South Africa's National Consumer Commission has published draft guidelines requiring businesses engaged in direct marketing to register on the Opt-Out Registry system and implement monthly database cleansing processes. The guidelines establish comprehensive operational requirements including fee structures, suppression-list integration, and granular blocking mechanisms that transform legal obligations into concrete data-flow and systems requirements.

Massachusetts is introducing three new cannabis license categories that will allow social consumption lounges to operate in the state. Operators must navigate complex local zoning bylaws, strict compliance standards, and community host agreements to successfully enter this emerging market.

A New York federal court recently expanded the interpretation of the Restore Online Shoppers' Confidence Act (ROSCA) by ruling that a one-time shipping protection fee automatically added to a consumer's cart qualifies as a "negative option" under the law. This decision could significantly broaden ROSCA's application beyond traditional recurring subscriptions to encompass common e-commerce checkout practices where consumers must affirmatively decline optional charges...

California's Honest Pricing Law aimed to eliminate hidden fees, but recent litigation reveals a new battleground: optional fees presented through pre-checked boxes and default-on toggles. The Harris v. LoveShackFancy decision demonstrates how checkout design itself can trigger consumer protection claims, even when fees are technically optional and comply with drip pricing statutes.