Overview
Automatic renewal laws (ARLs)—state statutes governing continuity programs and automatically renewing contracts—have proliferated throughout the United States since 2010.
These ARLs restrict how companies market, confirm and cancel subscription plans purchased by consumers. Given the various state laws, as well as federal law, companies relying on subscription pricing models face a complex regulatory scheme. There is an increased risk of class actions, government investigations and enforcement actions. This can lead to significant costs and disruptions for companies in the form of high-value settlements and lengthy litigation.
Class action defense and compliance
Manatt represents clients in state and federal litigation across the country alleging violations of ARLs and in major regulatory investigations of automatic renewal compliance. Our understanding of ROSCA and state ARLs, as well as our experience with serial plaintiffs—and their preferred legal counsel—allows us to help you avoid pitfalls and offer business-oriented compliance advice. When claims arise, we understand what it takes to resolve them quickly and as cost-effectively as possible.
Our client roster is built across industries, including consumer products and services, e-commerce and technology firms, financial services, health care, retail and more. Our work includes:
- Class action defense for companies sued in consumer class actions alleging violations related to ARLs;
- Strategic counseling and ARL compliance assessments to minimize exposure and reduce the risk of future litigation;
- Analysis of your sign-up processes, policies and practices so we can offer comprehensive recommendations across numerous areas, including private class actions, state and federal government enforcement actions, and regulatory compliance;
- Drafting disclosures, offering feedback on creatives and supporting the testing process to minimize risk while maximizing conversion; and
- Curating an extensive library of ARL case materials, motions (including motions to dismiss, demurrers and motions to compel arbitration), case law research and compliance materials that we can leverage to create cost efficiencies.
Manatt’s ARL Handbook
To help you build an effective ARL compliance program and stay compliant amidst a canvas of ever changing state and federal policies, Manatt has developed a comprehensive guide that outlines the state and federal ARLs in all 50 states.
Learn more about Manatt’s ARL Handbook .
