Drafting and Enforcing Automatic Renewal Clauses: Continuous Contracts and Subscription Services
Consumer Protections, Penalties, Trends in California and New York and More
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will provide advice on drafting and enforcing automatic renewal provisions in subscription agreements and other continuous contracts. In addition to looking at nationwide trends, the panel will address the recent New York law that went into effect on Feb. 9, 2021, joining an increasing number of laws imposing strict demands on automatically renewing and continuous contracts.
Outline
- A Primer on automatic renewal laws
- Automatic renewals
- Continuous service contracts
- Overview of federal and state regulation:
- ROSCA
- Broad state laws
- Narrow state laws
- Common exemptions
- Other scope questions
- Drafting automatic renewal clauses
- Nationwide vs. state-by-state vs. hybrid approaches
- Key considerations:
- Affirmative consent and double opt-ins
- Clear and conspicuous notice
- Visually proximate notice
- Acknowledgments
- Free trials
- Cancellation rights
- Renewal reminders
- Changes to terms
- Private and public enforcement risks
- Notable AG actions
- Notable class actions
- Notable settlements
- Safe harbors
- Remedies:
- Restitution
- “Unconditional gifts”
- Civil penalties
Benefits
The panel will review these and other relevant issues:
- How does the new NY automatic renewal law affect consumer contracts?
- How does the new NY law vary from other state automatic renewal laws?
- What is the status of class actions filed under state automatic renewal laws?
- What are the best practices for drafting automatically renewing contracts?
Faculty
Matthew J. Adler
Attorney
Faegre Drinker Biddle & Reath
Mr. Adler is a trusted advocate and counselor who litigates complex commercial disputes and putative class actions for... | Read More
Mr. Adler is a trusted advocate and counselor who litigates complex commercial disputes and putative class actions for companies in the retail, technology, insurance, automotive, construction and telecommunications industries. He is known to be a persuasive writer and even-keeled problem-solver who provides practical, cost-effective solutions for his clients. Mr. Adler has defended numerous class actions, in state and federal court, involving claims of false advertising, fraud, breach of contract, breach of warranty and alleged violations of the Telephone Consumer Protection Act and of California’s consumer protection statutes, the Unfair Competition Law, the False Advertising Law, and the Consumers Legal Remedies Act.
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Michael P. Daly
Partner
Faegre Drinker Biddle & Reath
Mr. Daly has spent two decades defending, counseling, and championing clients that interact with consumers. His... | Read More
Mr. Daly has spent two decades defending, counseling, and championing clients that interact with consumers. His practice focuses on defending class actions, handling critical motions and appeals, and maximizing the defensibility of marketing and enforceability of contracts. He counsels clients on revising their marketing and contracts. His work has included: maximizing enforceability of arbitration agreements and class action waivers, drafting terms of use and privacy policies for websites and mobile applications, and reviewing fee disclosures, bill presentment, and cost recovery mechanisms. Mr. Daly co-chairs the class action subcommittees of the ABA’s Consumer Litigation Committee and Class Actions and Derivative Suits Committee.
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Antoinette Snodgrass
Attorney
Faegre Drinker Biddle & Reath
Ms. Snodgrass has a diverse law practice that includes a variety of litigation cases, including breach of contract... | Read More
Ms. Snodgrass has a diverse law practice that includes a variety of litigation cases, including breach of contract actions, class actions and products liability. Additionally, a significant portion of her matters involve environmental disputes, including both environmental litigation and remediation. Finally, Ms. Snodgrass also handles other regulatory matters such as securities investigations and litigation.
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