As part of the systematic review of all Commission rules, on May 14, 2009, the Commission initiated its periodic review of the Negative Option Rule (or the Trade Regulation Rule on Use of Prenotification Negative Option Plans) by publishing a notice seeking public comments on the effectiveness and impact of the rule. 74 FR 22720.

Issued in 1974, and last reviewed in 1997, the Negative Option 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 2009 Federal Register Notice sought 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; the effect on the rule of any technological, economic, or other industry changes; and whether the rule should be extended to cover other types of negative option plans. The comment period closed on July 27, 2009. Staff received requests seeking to extend the comment period from several States, a county government agency, and an industry trade association. On August 7, 2009, the Commission granted these requests and reopened the comment period until October 13, 2009 (74 FR 40124). On July 25, 2014, the Commission announced it was closing the periodic Regulatory Review and retaining the Negative Option Rule as currently written. 79 FR 44271 (July 31, 2014).