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FTC

RIN: 3084-AB13

Publication ID: Spring 2009

Title: ●Use of Prenotification Negative Option Plans
Abstract: Issued in 1974 and last reviewed in 1997, the Trade Regulation Rule on Use of Prenotification Negative Option Plans (Negative Option Rule or Rule) governs the operation of prenotification subscription plans. Under these plans, sellers ship merchandise, such as books, compact discs, or tapes, automatically to their subscribers and bill them for the merchandise if consumers do not expressly reject the merchandise within a prescribed time. The Rule protects consumers by: (a) Requiring that promotional materials disclose the terms of membership clearly and conspicuously; and (b) establishing procedures for the administration of such negative option plans. The Commission plans to request comments on the rule during 2009 as part of the Commission's systematic review of all current Commission rules and guides. The Commission plans to seek comments on, among other things, the economic impact and benefits of this rule; possible conflict between the rule and State, local, or other Federal laws or regulations; and the effect on the rule of any technological, economic, or other industry changes.
Agency: Federal Trade Commission(FTC)	Priority: Substantive, Nonsignificant
RIN Status: First time published in the Unified Agenda	Agenda Stage of Rulemaking: Prerule Stage
Major: No	Unfunded Mandates: No
CFR Citation: 16 CFR 425
Legal Authority: 15 USC 41 to 58

Legal Deadline: None

Timetable:

Action	Date	FR Cite
ANPRM	05/00/2009

Regulatory Flexibility Analysis Required: No	Government Levels Affected: None
Small Entities Affected: Businesses, Organizations	Federalism: No
Included in the Regulatory Plan: No
RIN Data Printed in the FR: No
Agency Contact: Robin Rosen Spector Attorney Federal Trade Commission 600 Pennsylvania Avenue NW, Washington, DC 20580 Phone:202 326-3740 Email: rspector@ftc.gov