Helping You Navigate CFPB Guidance

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

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...

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.

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.

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.

Virginia's Cannabis Control Authority has released its initial draft of adult-use marijuana regulations, outlining application fees, license caps, and the approval process for the state's anticipated July 2027 launch of recreational cannabis sales. While the draft provides crucial details on licensing requirements and ownership restrictions, significant questions remain about the application timeline and evaluation criteria that will determine which entities receive coveted permits.

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 takes decisive action on multiple fronts, from scrutinizing healthcare mergers in Ohio to extending comment periods on personalized pricing policies. Meanwhile, a major payment processor faces millions in penalties for allegedly facilitating merchant fraud and deceptive telemarketing schemes.

Regulators and legislators have been keenly focused on personalized pricing for several years, and the degree of interest has increased significantly in recent weeks. For example, Seattle passed a law banning the use of personalized pricing in certain grocery sales, a key New York City official publicly advocated for adoption of a multi-industry proposal, and the Federal Trade Commission (FTC) Chairman previewed that more agency action is on the way.