FTC Announces $7.5 Million Settlement Over Cancellation Practices

In July, the Eighth Circuit vacated the FTC's "Click to Cancel Rule." At the time, we noted that although the FTC was unlikely to try to resurrect the Rule, they could continue to challenge cancellation practices under other authority, including the Restore Online Shoppers' Confidence Act (or "ROSCA"). A settlement announced today illustrates that point, along with the words of Director of the Bureau of Consumer Protection Christopher Mufarrige who further stated: "As part of our effort to reinvigorate the agency's fraud program, the FTC will continue enforcing ROSCA against online sellers where they violate this important statute."

Chegg offers educational products and services geared toward high school and college students. Among other things, the company offers various online subscription services including study tools, homework help, and writing assistance. The FTC alleged that Chegg made cancelling those services unnecessarily difficult, in violation of ROSCA's