Our Greenberg Traurig colleagues, Ed Chansky and Irving Scher, recently prepared a GT Client Advisory discussing the enforcement of inadequate negative option/automatic-renewal disclosures and the requirements for companies to be compliant with state and federal laws. Negative options, as defined by the FTC, are commercial transactions in which sellers interpret a customer’s failure to take an affirmative action, either to reject an offer or cancel an agreement, as assent to be charged for goods or services. The authors recommend that companies offering goods or services with negative options or other forms of automatic renewals review the federal and state obligations to help avoid consumer suits.
To view the GT Client Advisory on www.gtlaw.com, click here.
To view the GT Client Advisory as a PDF, click here.