Hunton Retail Law Resource

In a significant move, the Federal Trade Commission (FTC) has issued its final “Click-to-Cancel” Rule aimed at streamlining the cancellation process for subscription services. This Rule is a critical development for retailers, particularly those utilizing negative option marketing—where customers are automatically enrolled in subscriptions and must actively cancel to stop payments.

We recently posted an article on Hunton’s Insurance Recovery Blog about a new Illinois Appellate Court decision that offers concrete direction for retail policyholders evaluating their exposure under the Illinois Biometric Information Privacy Act (BIPA).  

We recently posted an article on Hunton’s Privacy & Information Security Law Blog on a newly issued federal district court opinion citing that New York City’s “Consumer Data Law” violated the First Amendment and the regulation of commercial speech.  A federal judge declared the municipal law requiring food-delivery companies to share customer data with restaurants unconstitutional.

Coming on the heels of its Social Media Data Practices report, the FTC announced that it will hold a virtual workshop on February 25, 2025 examining “The Attention Economy: Monopolizing Kids’ Time Online.” The event will convene researchers, technologists, child development and legal experts, consumer advocates and industry professionals to discuss design features that keep children and teens engaged online. The topics to be covered include research relating to whether certain features lead to more engagement, the psychological and physical impacts of design features on youth well-being, and the intersection between design, well-being, and the law. The FTC is taking expressions of interest from potential panelists until November 15, 2024.

The FTC has settled a case with a company operating an artificial intelligence-enabled “writing assistant” service. Among the use cases Rytr LLC offered was one that would craft testimonials and reviews, allowing users to select desired tone (e.g., “formal,” “funny,” “convincing”), keywords and phrases, level of creativity (e.g., “optimal,” “high,” “max”), and the number of reviews sought. Based on this user input, Rytr’s AI service would then generate genuine-sounding, detailed reviews quickly and with little user effort.

In California, shoppers will no longer be offered plastic bags at the grocery store checkout. Under a new law, effective January 1, 2026, single-use shopping bags are banned from any point of sale. This includes bags made from plastic, paper, or other materials that are not recycled paper or certified reusable bags. However, the ban does not apply to bags used before the point of sale, such as produce bags and overwrap for fresh meat.

Last summer, on June 29, 2023, the Supreme Court struck down affirmative action in college admissions in Students for Fair Admissions v. Harvard. Although the decision did not address diversity, equity and inclusion (“DEI”) initiatives outside of the higher education context, parallels were immediately drawn to corporate DEI programs. Over the past year, conservative activist groups have challenged a variety of corporate DEI initiatives, and although this has resulted in a mixed bag of success, companies should be thoughtful about their DEI approaches moving forward as ...

When developing a retail shopping center, landlords have a vision for what that shopping center will look like. This vision comes to life as the shopping center is leased up and tenants open for business. In order to preserve that vision, and ultimately the marketability of the shopping center, landlords will craft permitted use, prohibited use and exclusive use concepts into their leases to ensure that the shopping center occupants continue to operate in the shopping center throughout the term of their leases in accordance with the landlord’s vision.

On August 2, 2024, Illinois amended its Biometric Information Privacy Act (BIPA), curbing the potential for massive damages and modernizing the law’s written consent provisions. On their face, the amendments are not retroactive.  It remains unclear, however, whether this change in Illinois law will nonetheless be applied retroactively by the courts.

Fake reviews and testimonials for services and products have been under the watchful eye of the Federal Trade Commission (FTC) for decades. With the proliferation of online bots and generative Artificial Intelligence (AI) tools, reviews and testimonials have been even easier to fake in recent years. On August 14, 2024, the FTC announced the Final Rule on the Use of Consumer Reviews and Testimonials, prohibiting fake reviews and testimonials from being sold or purchased by businesses. Importantly, the Final Rule enables the FTC to seek civil penalties against knowing violators.