DAILY011923
CFPB Circular Tightens UDAAP Grip On Negative-Option Marketing
Building on recent enforcement actions targeting “digital dark patterns,” the CFPB today issued a circular taking aim at negative-option programs that it believes mislead consumers into unwanted, automatic subscription renewals. The circular stipulates that such practices are against the law and may constitute UDAAP violations (see FSM Report CONSUMER39). Behaviors the Bureau says risk CFPA violation or qualify as UDAAP include failures of disclosure and informed consent when negative option programs are in place as well as “unreasonable” impediments to cancellation requests.