2nd Wave Of Auto-Renewal Lawsuits Attack Business Model

Law360, New York (August 6, 2015, 1:30 PM EDT) -- In the past several years, subscription-based product and service providers have emerged in almost every sector. People are buying baby supplies, razors, groceries and cloud space by using a model once reserved for magazines. For a monthly fee, startups also offer services, such as transportation, personal assistance and dress rentals, as companies continue to thrive using the monthly subscription model — and more startups are continuing to launch based on it.

Although subscription-based services can benefit consumers by offering simplicity and lower prices, legal issues emerge when customers claim that they did not knowingly agree to continue paying for future products...

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