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ARTICLE · 18 JULY 2023

Sufficiently Conspicuous: Arbitration Agreements And Class Action Waivers For Subscription-Based Businesses

Foley & Lardner LLP
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Since its enactment in 2010, California's Automatic Renewal Law (ARL) has motivated an ever-increasing number of putative class action complaints.

United StatesLitigation, Mediation & Arbitration
Erik Swanholt
Erik Swanholt
John J Atallah
John J Atallah
Cole K. Waldhauser
Cole K. Waldhauser
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Since its enactment in 2010, California's Automatic Renewal Law (ARL) has motivated an ever-increasing number of putative class action complaints. The latest surge is due in large part to amendments that went into effect last summer that add to the statute's requirements for businesses offering goods or services on a subscription basis. These amendments introduced specific requirements for online subscription termination options, as well as for the timing and content of reminder notices to be sent before term expiration. While less rigorous in some respects, Colorado, Delaware, Illinois, Idaho, and Virginia also enacted similar statutes that, in turn, mirror several requirements of the federal Restore Online Shoppers Confidence Act (ROSCA).

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