Being Boss with Emily Thompson

#340 - Small Business Legal Updates for 2023 with Autumn Witt Boyd

February 7, 2023

Key Takeaways Copied to clipboard!

  • Regularly reviewing and updating contracts, especially those related to your primary revenue streams, is crucial for legal protection and business clarity. 
  • Businesses engaging in text message marketing face significant legal risks under the Telephone Consumer Protection Act (TCPA) due to high potential damages and class-action lawsuits, necessitating strict adherence to consent and documentation requirements. 
  • As online business matures, compliance with regulations like the California Auto Renewal Law (ARL) and FTC truth-in-advertising standards is becoming increasingly important, requiring businesses to ensure clear communication, easy cancellation processes, and honest marketing claims to avoid legal repercussions. 

Segments

Annual Legal Check-in Essentials
Copied to clipboard!
(00:59:00)
  • Key Takeaway: At a minimum, businesses should annually review their core contracts, such as client agreements or terms of use, to ensure they reflect current business practices and address any recurring friction points.
  • Summary: The conversation begins by discussing the importance of an annual legal check-in for businesses, emphasizing that contracts are fundamental legal protections. It highlights that while website terms and conditions are often ‘set and forget,’ privacy policies may need periodic updates, and refund policies should be clearly defined in contracts, especially given the recent increase in refund requests.
FTC Enforcement and Marketing Claims
Copied to clipboard!
(01:42:00)
  • Key Takeaway: Businesses, particularly in health/wellness and financial coaching, must be vigilant about truth in advertising, as the FTC is increasing enforcement against unsubstantiated claims and ‘get rich quick’ schemes.
  • Summary: This segment focuses on the growing enforcement of Federal Trade Commission (FTC) regulations, emphasizing truth in advertising. The discussion highlights that the online business industry is no longer operating in a regulatory vacuum and that claims made in marketing materials, especially regarding health, weight loss, and income generation, are under scrutiny.
Text Message Marketing Risks
Copied to clipboard!
(02:15:00)
  • Key Takeaway: Text message marketing, while effective, carries substantial legal risk under the TCPA, with potential for high damages per text and class-action lawsuits, necessitating express consent and careful compliance.
  • Summary: The discussion shifts to the legal landscape of text message marketing, noting its effectiveness but also the significant compliance requirements under the Telephone Consumer Protection Act (TCPA). The high per-text damages and the prevalence of class-action lawsuits are highlighted as major risks, urging businesses to proceed with caution and proper legal guidance.
California Auto Renewal Law (ARL)
Copied to clipboard!
(03:25:00)
  • Key Takeaway: Businesses offering auto-renewing subscriptions must comply with California’s ARL by providing clear upfront notices and making cancellation easy, as non-compliance can lead to significant consumer lawsuits.
  • Summary: This segment addresses the California Auto Renewal Law (ARL), which imposes strict requirements on businesses with auto-renewing subscriptions. The law mandates clear upfront disclosures and a simple cancellation process, with significant penalties for non-compliance, impacting businesses operating in or selling to California residents.