Rule Concerning Recurring Subscriptions and Other Negative Option Programs ("Negative Option Rule")
Revision of a currently approved collection
No
Regular
11/15/2024
Requested
Previously Approved
36 Months From Approved
02/28/2027
159,025
25
267,500
2,500
0
0
The Federal Trade Commission (âFTCâ or âCommissionâ) is issuing final amendments to the Commissionâs âRule Concerning Use of Prenotification Negative Option Plans,â retitled the âRule Concerning Recurring Subscriptions and Other Negative Option Programsâ (âRule,â âfinal Ruleâ or âNegative Option Ruleâ). The final Rule now applies to all negative option programs in any media, and, among other things, (1) prohibits misrepresentations of any material fact made in connection with marketing goods or services with a negative option feature; (2) requires sellers to provide important information prior to obtaining consumersâ billing information and charging consumers; (3) requires sellers to obtain consumersâ unambiguously affirmative consent to the negative option feature prior to charging them; and (4) requires sellers to provide consumers with simple cancellation mechanisms to immediately halt all recurring charges. The final Rule makes changes in the Ruleâs recordkeeping and
disclosure requirements that will increase the PRA burden as detailed below. Accordingly, the Commission is submitting the final Rule and a Supplemental Supporting Statement to the Office of Management and Budget for review under the PRA.
US Code:
15 USC 41-58
Name of Law: Federal Trade Commission Act
The amendments to the Rule will result in an estimated additional 265,000 annual hours of burden and $6,541,260 in associated annual labor costs.
$100,000
No
No
No
No
No
No
No
Katherine Johnson 202 326-2185
No
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.