Page 3 - Kattison Avenue - Fall 2025 - Issue 15

(ROSCA) enforcement also remains a focus, noting the which prohibits the use of a model’s likeness in AI-generated
significant consumer impact of problematic subscription content without consent.
practices, including unexpected sign-ups and cancellation
processes that are overly burdensome. Familiar Hot Topics That Still Drive Risk
Several long-standing compliance areas remain active, with steady
State Regulation: Moving Past a regulatory attention and litigation.
California-First Strategy
• Gamified promotions and “sweeps casinos”: “Social casino”
For years, brands could design to California’s high standards and “sweeps casino” models, where players purchase tokens
and market-leading regulation and assume compliance in to play games or earn sweepstakes entries, are receiving
other states. With an increasing patchwork of state laws, that heightened scrutiny. If reward points can be redeemed for
approach may no longer be sufficient.
items with monetary value, the program likely requires an
• Pricing and Promotions: Several states now require up- alternate method of entry and precise disclosures. Some
front, all-in pricing for products and services, including states, including California, have already banned sweeps
Massachusetts. New York’s algorithmic pricing law casinos altogether. Marketers should audit game mechanics,
requires clear disclosure when personal data influences redemption paths and the availability of an alternate method
the price a consumer sees. Washington’s Commercial of entry, and treat any feature with monetary equivalence as
Electronic Mail Act prohibits misleading subject lines in higher risk.
marketing emails, meaning “limited time” or “free” offers • Auto-renewals and negative-option programs: Auto-
must be accurate and substantiated. renewal laws remain a focus for regulators. Before collecting
• Digital Replicas and Synthetic Performers: For talent payment, companies must obtain express affirmative consent
agreements, revisit rights-of-publicity language to to renewal terms, ideally through a separate checkbox or
address digital replicas and synthetic performers, signature line. Post-purchase, customers should receive an
including requirements under New York’s Digital Replicas acknowledgment containing the renewal terms and clear
Act, which regulates contracts for the creation and use cancellation instructions. Some states require notice when
of digital replicas, and New York’s Fashion Workers Act, a promotional offer expires and before recurring charges are
processed or material changes take effect.

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