Articles

Linda Goldstein Analyzes Repercussions of California Class-Action Settlement over Auto-Renewal Program

Articles / August 15, 2017

Partner Linda Goldstein authored an article published Aug. 15, 2017, in Response Magazine. The article, “Lessons Learned from the Proactiv Class-Action Settlement,” analyzes a recent California case in which a skin-care company agreed to pay up to $15.2 million in a combination of cash and products over allegations that the company had failed to adequately disclose the terms of its auto-renewal subscription plan.

Goldstein notes that the settlement is noteworthy because it shows that automatic renewal programs remain an attractive class-action target, and because it is a reminder that marketers must keep in mind the various state laws that may differ from the federal Restore Online Shoppers Confidence Act (ROSCA). In addition, Goldstein writes, the class-action settlement sets forth specific requirements for the renewal program disclosure and affirmative consent language.

Goldstein concludes, “While automatic renewal programs continue to increase in use and popularity, it is unlikely that we will see any reduction in scrutiny any time soon.”

Read the article.

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