FTC To Increase Enforcement On Subscription Services

Earlier today, the FTC issued a policy statement warning marketers against using "dark patterns" to trick or trap consumers into subscription services. The statement is primarily intended to assist marketers by providing guidance on the FTC's interpretation of existing law as it applies to various types of "negative option" programs, including automatic renewals, subscriptions, and free-to-pay trials.

As we've noted in prior posts, the FTC has brought other enforcement actions in this area. The statement starts by outlining the FTC's statutory authority behind those actions - including Section 5 of the FTC Act, the Restore Online Shoppers' Confidence Act, and the Telemarketing Sales Rule - and highlights three key areas marketers should keep in mind: (1) Disclosure; (2) Consent; and (3) Cancellation.