Overview
- The FTC said the world's largest online retailer will pay $2.5 billion—$1 billion in civil penalties and $1.5 billion in restitution—under a proposed order requiring simple cancellation, bans on misrepresentations, a one‑year compliance report, and a ten‑year duration for the company with three years for two executives.
- Chegg agreed to a $7.5 million resolution that provides refunds and mandates easy‑to‑use cancellation flows, prohibits misrepresentations, requires ten years of records, and subjects the company to ongoing FTC monitoring.
- The agency’s suit against LA Fitness remains pending, alleging ROSCA and FTC Act violations for cancellation processes that required hard‑to‑find forms, in‑person visits during limited hours, or certified mail.
- The Eighth Circuit vacated the FTC’s proposed click‑to‑cancel rule, yet the commission has maintained subscriptions as a priority by bringing ROSCA and Section 5 actions across sectors.
- State pressure is building as California’s Automatic Renewal Law demands online cancellation that is as easy as sign‑up, with coordinated enforcement such as CART and rising private litigation risk.