CFPB Finalizes Rules On Privacy Disclosures

New York City has enacted the nation's first municipal click-to-cancel rule, requiring businesses to provide clear disclosures, simple cancellation processes, and advance renewal notices for subscription services. With approximately 30 states already implementing similar regulations and the federal landscape in flux following the FTC's vacated rule, companies now face an increasingly complex patchwork of compliance obligations. The rule takes effect October 1, 2026, and imposes penalties ranging from $525 t

The FTC and Washington state secured a record $225 million settlement from Amway and affiliated groups over allegations they misled recruits about earnings potential while pressuring them to buy products with little retail opportunity. The complaint reveals that over three-quarters of U.S. product volume was sold to IBOs themselves rather than retail customers, with fabricated sales reporting masking the recruitment-driven model. The settlement's injunctive provisions establish new standards for earnings cl

A federal court has issued a nationwide injunction blocking the NCAA from enforcing its new five-year eligibility rule against Division I athletes who graduated high school in 2022. The ruling creates immediate compliance challenges for athletic departments as they navigate roster management, revenue-sharing caps, and potential penalties while the NCAA appeals the decision.

State-law class actions targeting automatic renewal and subscription practices are accelerating, creating significant litigation risk for companies that rely on recurring revenue models. Recent settlements demonstrate that even technical compliance failures can lead to seven-figure exposure, with California, Illinois, and Virginia statutes driving the most aggressive litigation.

The Federal Trade Commission is exploring whether digital platforms should bear greater responsibility for preventing impersonation ads that falsely pose as legitimate businesses or government agencies. Through an Advance Notice of Proposed Rulemaking, the agency seeks public input on potential amendments to its existing Impersonation Rule, examining how ad-optimization tools and platform practices...

This comprehensive newsletter covers recent federal and state consumer protection enforcement actions, including FTC settlements with payment processors, state attorney general lawsuits against tech companies, and advertising challenge decisions. The update examines regulatory developments such as the FTC's withdrawal of its 2021 health app breach policy statement and the launch of a new rule guidance program, while highlighting emerging enforcement priorities around AI-powered advertising, personalized

The Federal Trade Commission has issued a proposed enforcement policy statement targeting businesses that use consumer personal data to set individualized prices. While acknowledging it cannot prohibit all personalized pricing, the FTC warns that companies may violate federal law if they fail to clearly disclose their use of personal data in pricing decisions.

On July 8, the United States Court of Appeals for the Eighth Circuit vacated the Federal Trade Commission's Negative Option Rule, also referred to as the...

A federal court in Florida dismissed a false advertising lawsuit against Hershey over Reese's Peanut Butter Pumpkins, where consumers claimed the packaging showed carved jack-o-lantern faces that didn't appear on the actual candy. The court ruled that consumers failed to demonstrate concrete economic injury, finding their disappointment over the product's appearance insufficient to establish legal standing.

In an October 16, 2024, press release, the Federal Trade Commission (FTC) announced its final Negative Option Rule, requiring businesses to make it as easy for consumers to cancel their enrollment...