Marketing Law Q4 2024: Big Changes, Bigger Impacts

The last few months of 2024 were packed with regulatory shifts, legal battles, and new rules that promise to reshape the marketing law landscape for years to come. From privacy laws and AI regulations to subscription reforms and non-compete bans, the government made it clear—2024 was about enacting regulations to address rapid changes in technology and the potential threats they represent.

As we head into 2025, the momentum isn’t slowing down— at least not yet. Here’s a closer look at the biggest developments from this past quarter and what they mean moving forward.

Privacy Gets Serious—And Complicated

Data privacy took center stage in 2024 as more states rolled out laws modeled after California’s Consumer Privacy Act (CCPA). By year’s end, 14 states had enacted their own privacy regulations, giving consumers more control over their data, such as the right to know what’s being collected, the right to request deletions, and to opt out of sales. New laws in Iowa, Delaware, and New Hampshire became effective on January 1, 2025, with others following later in the year.

What’s Next? Expect even more states to jump on the privacy bandwagon. At the federal level, there’s growing pressure to create a nationwide standard to simplify compliance. Until then, businesses will need to keep a close eye on each state’s evolving rules while considering the CCPA as the benchmark for compliance.

AI and Tech Under the Microscope

Launched just two years ago, generative artificial intelligence has advanced at an unprecedented rate, leaving regulators scrambling to keep up. This rapid growth has drawn attention to marketing law, as the Federal Trade Commission (FTC) investigates companies like Rytr and DoNotPay for allegedly using AI to mislead consumers with fake reviews and false claims about AI-powered services. In a related move, the FTC finalized rules banning fake online reviews, reinforcing that marketing law prohibits businesses from using AI to manipulate customer opinions.

What’s Next? AI regulations are likely to tighten in 2025, focusing on ethical AI use and transparency. Businesses using AI will need to ensure their practices are honest and clearly communicated to avoid fines and reputational damage.

Subscription Models Overhauled—No More Traps

In October, the FTC turned its focus on impossible-to-cancel subscriptions, when it introduced its new “Click-to-Cancel” rule, which requires companies to ensure that subscriptions are as easy to cancel as they are to create. Hidden fees and tricky terms are out, and clear disclosures are now mandatory.

What’s Next? The rule is set to take effect on January 14, 2025, with businesses required to comply by May 14, 2025. However, several industry groups have filed lawsuits challenging the rule, arguing that the FTC overstepped its authority. These legal challenges could delay or alter the implementation of the rule.

Non-Compete Agreements in Limbo

The FTC’s proposed ban on non-compete agreements was met with mixed reactions. Supporters cheered the move, but businesses pushed back, leading to a court-ordered delay. The rule’s future now hangs in the balance as legal battles continue into 2025.

What’s Next? The FTC has appealed the court's decision blocking the non-compete ban, demonstrating its commitment to pursuing the regulation. However, the appeal process is expected to extend into 2025, leaving the rule's future uncertain. Companies should prepare for stricter regulations on non-competes, even if the ban is ultimately modified or overturned.

Fighting Robocalls—And Winning

On November 15, 2024, the FTC released the National Do Not Call Registry Data Book for Fiscal Year 2024, which showed that consumer reports about unwanted calls have decreased by more than 50% since 2021. This marks the third consecutive year of decline in unwanted call reports, which the FTC attributes to various initiatives, including Operation Stop Scam Calls, which was launched in 2023.

What’s Next? The focus could soon shift to scams delivered through text messages and emails, putting marketing law in the spotlight. Businesses must ensure compliance with the TRACED Act and related regulations to avoid penalties and maintain lawful communication practices.

Dark Patterns and Deceptive Designs Called Out

California regulators cracked down on “dark patterns”— website tricks designed to mislead or manipulate users into making choices that benefit businesses at the expense of consumer privacy. The California Privacy Protection Agency (CPPA) now requires businesses to use clear, straightforward language for consent forms and make privacy options easy to find.

California wasn’t alone in tackling dark patterns. Similar regulations are likely to appear in other states (Colorado and Connecticut have already enacted similar bans) and the FTC has targeted such practices in enforcement actions across the country​.

What’s Next? The crackdown on dark patterns is just beginning. Businesses should review their interfaces and consent mechanisms to avoid being flagged for violations. Given the FTC’s trends, companies may face stricter enforcement in 2025.

The Corporate Transparency Act: On Again, Off Again

Enacted by Congress as part of the National Defense Authorization Act, the Corporate Transparency Act (CTA) was intended to enhance transparency in business ownership and combat illicit activities such as money laundering, tax fraud, and terrorism financing. The CTA requires most US corporations, LLCs, and other entities to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).

Originally scheduled to take effect on January 1, 2024, the CTA faced legal challenges regarding its constitutionality. On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction suspending CTA enforcement. On December 23, a motions panel of the Fifth Circuit Court of Appeals lifted the injunction, temporarily reviving the CTA, which was then reinstated a few days later on December 26th, when another Fifth Circuit panel cited the need to preserve the status quo while reviewing substantive arguments on the constitutionality issue.

What’s Next? Oral arguments on the fate of the CTA are currently scheduled for March 25, 2025, but FinCEN has filed an application with the Supreme Court to stay the nationwide injunction, with a response requested by January 10, 2025.

The One-to-One Consent Rule

The Federal Communications Commission’s (FCC) new marketing law, effective January 27, 2025, introduces strict guidelines for securing consent for marketing robocalls and robotexts. Under this rule, businesses can no longer depend on broad, transferable consents to contact consumers. Instead, they must obtain prior explicit written consent for each specific seller to send automated calls or texts for marketing purposes. Additionally, the communications must be logically and topically related to the interaction that initially prompted the consent.

What’s Next? While aimed at curbing unwanted communications, the rule has sparked legal challenges and raised questions about its impact on marketing practices. Trade groups have filed lawsuits arguing that the FCC exceeded its authority in imposing the rule. Court decisions could delay or alter the rule’s enforcement.

Businesses should stay updated on court rulings to adjust strategies accordingly. With the rule’s January 27, 2025, implementation date fast approaching, businesses must act swiftly by updating consent practices—even as the legal battle unfolds.

Looking Ahead: What to Expect in 2025

With the new political landscape emerging after the 2024 elections, regulatory priorities may shift, but the emphasis on consumer protection and data privacy remains steadfast. Businesses will likely continue grappling with stricter privacy laws while anticipating whether a federal privacy standard gains traction. Key developments in marketing law, including ongoing court battles over the non-compete ban, the CTA, and the one-to-one consent rule, could either bolster the government’s accountability efforts or establish boundaries on regulatory authority.

In tech, AI regulation is expected to stay in the spotlight as lawmakers look for ways to keep up with rapid advancements and curb misuse. Crackdowns on dark patterns and scam prevention are also likely to ramp up, pushing businesses to adopt clearer, more ethical practices. Companies that get ahead of these changes, won’t just avoid fines, they’ll be in a stronger position to grow.