Key Questions On Auto-Renewal Laws After Fitness App Suit

By Michael Daly, Matthew Adler and John Cappel (March 3, 2022, 6:14 PM EST) -- Automatic renewal laws have generated headlines recently.

Take, for example, the Feb. 11 Nichols v. Noom Inc. settlement in the U.S. District Court for the Southern District of New York, in which the weight-loss app Noom Inc. agreed to pay $56 million, and provide an additional $6 million in subscription credits, in order to end putative New York federal court class claims over automatic subscription renewals.

Businesses that offer the automatically renewing provision of goods or services would be well advised to treat this as a teachable moment and stress-test their disclosures and practices — not only before but also after...

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