Rule Concerning Recurring Subscriptions and Other Negative Option Programs ("Negative Option Rule")

The Federal Trade Commission (“FTC” or “Commission”) is issuing final amendments to the Commission’s “Rule Concerning Use of Prenotification Negative Option Plans,” retitled the “Rule Concerning Recurring Subscriptions and Other Negative Option Programs” (“Rule,” “final Rule” or “Negative Option Rule”). 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 consumers’ billing information and charging consumers; (3) requires sellers to obtain consumers’ 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 Rule’s 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.

The latest form for Rule Concerning Recurring Subscriptions and Other Negative Option Programs ("Negative Option Rule") expires 2027-11-30 and can be found here.

Disclosure Requirements for Existing Clubs

Federal Enterprise Architecture: Economic Development - Business and Industry Development