The United States Court of Appeals for the Eighth Circuit has recently vacated the Federal Trade Commission’s revised Negative Option Rule, also known as the “Click to Cancel” Rule [hereinafter the “Rule”], on procedural grounds, citing various flaws during the regulation-making process.[1]
We previously reported that the Rule was scheduled to go into effect on July 14. The Eighth Circuit’s decision means that the
Read More FTC’s Click to Cancel Rule Has Been Vacated!As we previously reported, on October 16, 2024, the Federal Trade Commission (FTC), after receiving thousands of public comments, released the final version of its Negative Option Rule. The Rule is now scheduled to go into effect on July 14, 2025.[1] Any company with automatic renewal subscriptions or memberships will be impacted by the Rule.
The Rule, also known as the “Click-to-Cancel” Rule, will regulate
Read More Important Announcement Regarding the FTC’s Revised Negative Option Rule
The Federal Trade Commission’s (“FTC”) first Robinson-Patman Act (“RPA”) suit in decades has survived a motion to dismiss. The Honorable Fred W. Slaughter in the United States District Court for the Central District of California ruled on the papers that the FTC’s Complaint against Southern Glazers Wine and Spirits, LLC (“Southern”) “sufficiently alleges” a claim that Southern has engaged in price discrimination that injures competition among its customers, a secondary-line discrimination claim, as detailed below.[1]
As we summarized in a prior advisory (available here), two years ago, during the Biden administration’s tenure, the FTC announced its intention to ramp up enforcement of the RPA, a Great Depression era anti-price discrimination law, after decades of non-enforcement. The RPA forbids a seller of goods from engaging in price discrimination between two or more different purchasers. The rationale for the RPA was that preventing such price discrimination would enable smaller companies to compete with larger businesses.Read More Federal Judge Allows FTC’s Robinson-Patman Act Suit Against Southern Glazers Wine and Spirits to Continue Beyond Motion to Dismiss Stage
The potential for antitrust challenges brought by the Federal Trade Commission (“FTC”) or the United States Department of Justice (“DOJ”) is well known among deal-making parties. However, parties should also keep in mind two lesser-known antitrust issues when seeking to complete their merger: (1) the potential for private merger challenges; and (2) the increased likelihood of becoming engaged in multi-district litigation in the post State
Read More Private Merger Challenges and SAEVA — What Merging Parties Need to KnowThe Federal Trade Commission (“FTC”) has announced its narrowed “Junk Fee” Rule that targets pricing practices in the short-term lodging and live-event ticketing industries.[1] The Rule results from the FTC’s efforts over the past year to ban so-called “bait-and-switch” pricing tactics to ensure that, “consumers searching for hotels or vacation rentals or seats at a show or sporting event will no longer be surprised
Read More The FTC Releases New “Junk Fee” RuleOn October 16, 2024, the Federal Trade Commission (“FTC”) released its Negative Option Rule. A “negative option” is an arrangement where goods or services are provided based on a consumer’s silence, a failure to take some affirmative action to reject or cancel. The most recognized type of negative option program is a subscription service with automatic renewal features.
The Rule, also known as the “Click-to-Cancel”
Read More The FTC Has Significantly Expanded the Scope of Its Negative Option RuleConnecticut has amended its credit card surcharge law, effective as of May 24, 2022, that imposes important disclosure requirements in order for companies to offer discounts to customers who choose to pay in cash rather than by credit card. [1]
What is a Surcharge?
A surcharge is “an additional charge or fee that increases the total amount of a transaction for the privilege of using
Read More Connecticut Makes Significant Changes to Its Credit Card Surcharge Law Effective Immediately