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21-Oct-2020 18:49

Minor compliance violations can hit both a company’s bottom line and its reputation.The ease with which a customer can sign up online for a subscription program or free trial offer has attracted even more interest from regulators.The Federal Trade Commission (FTC) has already stepped up enforcement actions.And updates to California’s auto-renewal law that will take effect in July will make compliance even more complex.And that oversight is how they may end up hearing from a regulator or a plaintiff’s attorney.While these current requirements may seem complicated, compliance is about to get even more complex—particularly with the updates to California’s auto-renewal law (ARL).First, the company should repeat all the disclosures it stated throughout the purchase flow.But checkout can’t be the first time the consumer sees these disclosures—it must have made them previously throughout the buying process.

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Beginning July 1, California’s ARL requires companies that offer auto-renewal subscriptions online must also allow for cancellation online.For example, if the subscription is for content, such as streaming video, the company should clearly state on which devices the subscriber is able to view the content.



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