Online education platform Mindvalley was sued today for unlawful subscription billing practices—an area that continues to be a hotbed for class action litigation.
Here's how your subscription business can avoid being next:
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Here's how your subscription business can avoid being next:
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1) Make sure that your terms of service contain an enforceable arbitration clause with a class action waiver.
Writing this in a way that courts will enforce is only half the battle—you also need to present it such that you can prove the customer gave affirmative consent.
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Writing this in a way that courts will enforce is only half the battle—you also need to present it such that you can prove the customer gave affirmative consent.
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2) Review your checkout flow to make sure you're complying with federal law (ROSCA) and the various state automatic renewal laws.
States (like CA) have specific requirements about disclosures, cancellation methods, and confirmation and renewal notices.
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States (like CA) have specific requirements about disclosures, cancellation methods, and confirmation and renewal notices.
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Here's the cart page at issue:
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And here's a link to the lawsuit: storage.courtlistener.com/recap/gov.usco…
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