Ryan MacDonald

Devin Au

Eric Sheridan

Josh Baer

Alex Fuhrman

Brent Thill

Bryan Smilek

Jeff Silber

Jessica Wang

Matthew Shea

- Chegg Inc. has agreed to pay **$7.5 million** to settle allegations from the U.S. Federal Trade Commission (FTC) that the company made it unnecessarily difficult for consumers to cancel auto-renewing subscriptions, violating the Restore Online Shoppers’ Confidence Act.  **[1364954_095eb44dd89a4e2898f889ff4c242c72]** 
- The FTC complaint detailed that Chegg continued charging nearly **200,000 consumers** since October 2020 after they had requested cancellation, with internal emails revealing Chegg staff, including current CEO Nathan Schultz, were aware of the difficult process.  **[1364954_095eb44dd89a4e2898f889ff4c242c72]** 
- This marks Chegg's **second FTC settlement**, following a 2022 order related to data security lapses.  **[1364954_095eb44dd89a4e2898f889ff4c242c72]** 
- Following the settlement announcement, Chegg’s stock **declined 6%** on the day and **14% over three days**.  **[1364954_095eb44dd89a4e2898f889ff4c242c72]** 
- Analysts have an average one-year price target of **$0.83**, indicating a potential downside from the current trading price of **$1.43**, though some valuation models suggest a significant potential upside of nearly **240%**.  **[1364954_095eb44dd89a4e2898f889ff4c242c72]**

Chegg settles FTC suit over subscription cancellations

CHEGG (CHGG)