The Rule establishes disclosure requirements for sellers who use negative option plans. It requires sellers of these plans to disclose the plan's material terms, including the right of cancellation.
US Code:
15 USC 41-58
Name of Law: Federal Trade Commission Act
The burden estimate has been reduced by 9,085 hours (from 12,960 hours in 2008 to 3,875 in 2011) reflecting the decreased number of existing clubs (from 158 in 2008 to 45 in 2011) and new clubs (from 7/year in 2008 to 5/year in 2011) due to consolidation in the industry and the economic downturn. In addition, given industry input, we have lowered the estimate of the hours required for new club disclosures from 120 hours to 100 hours.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Negative Option SS 2011 final_mtd.pdf
Disclosure Requirements for Existing Clubs