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Articles by T. Victoria Noam
Effective June 12, California Issues Final Regulations For Charitable Fundraising Platforms Registration Duty For Cause-Marketing Programs
On March 26, 2024, the California Registry of Charities and Fundraisers issued final regulations to supplement the legal regulation of online charitable fundraising platforms under California Gov.
Registration for Online Cause-Related Marketing Programs in California
California AB 488 regulates various forms of cause-related marketing programs when conducted online, including charitable sales promotions, donation-at-checkout programs, and free-action programs where consumers are invited to take a cost-free action online to trigger a charitable donation by the company sponsoring the program, as reported in our October 2021 GT Alert. While some provisions of AB 488 took effect Jan.
FTC Proposes Amendments to Negative Option Rule on Auto-Renewal Programs
Automatic renewal programs continue to be a hot topic for businesses, consumers, and regulators. See February 2023 GT Advisory. Consistent with this trend, the Federal Trade Commission (FTC) on March 23 announced a notice of proposed rulemaking that would codify a number of requirements at the federal level, as well as broaden application of the FTC’s existing 1973 Negative Option Rule to cover virtually every type of subscription program.
Stricter Standards Emerging for Subscription-Style Services that Renew Automatically
Subscription-style services that renew automatically from month to month (or year to year) are all the rage. Businesses love them because they can provide ongoing revenue streams. Consumers often like them for convenience. But regulators (and consumers who sometimes may become surprised when a “free” trial converts into an unexpected paid service or who encounter hurdles when trying to cancel a service) increasingly view them with suspicion.
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