States Revisit Their Continuity Billing Laws

In the wake of increasing continuity billing practice complaints, the Federal Trade Commission ("FTC") is again taking a hard look at the space. The FTC has once again reviewed its 1973 Negative Option Rule, which was enacted, in part, to regulate automatic renewal plans, free to pay conversions, and continuity billing. Some of the recently proposed changes to the FTC's Negative Option Rule can be found here.

When it comes to emerging consumer issues, state authorities often take their regulatory cues from the federal government. Continuity billing is no exception. The most recent amendments to California's continuity billing law took effect on July 1, 2022, a discussion of which can be found here. Less than two years later, on April 1, 2024, California introduced Assembly Bill 2863, which proposes major amendments to the State's automatic renewal plan regulations. Following on the heels of this announcement, in another jurisdiction, Virginia Governor Glenn Youngkin