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ARTICLE · 26 FEBRUARY 2019

California Prosecutors Get Tough On Auto-Renewal Programs

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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Guthy-Renker LLC, one of the world's largest direct marketing companies, and distributor of Pro-Activ and Wen products, has agreed to change its auto-renew practices as part of a settlement negotiated with a task force ...

United StatesMedia, Telecoms, IT, Entertainment

Guthy-Renker LLC, one of the world's largest direct marketing companies, and distributor of Pro-Activ and Wen products, has agreed to change its auto-renew practices as part of a settlement negotiated with a task force of local California prosecutors' offices, approved as part of a final court judgment.  The company also will pay $1.2 million in penalties and up to $7.3 million in restitution to customers who got automatically-renewed charges without their consent.

The judgment requires Guthy-Renker to:

  • Conspicuously disclose automatic-renewal terms; 
  • Get consumers' explicit consent for renewals, through a separate check-box solely for the auto-renew terms;
  • Send consumers a clear summary of the auto-renewal terms after they pay; and

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www.fkks.com

This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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