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FTC RIN: 3084-AB13 Publication ID: Fall 2010 
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 requested comments on the rule on May 14, 2009, as part of the Commission's systematic review of all current Commission rules and guides (74 FR 22720). The Commission 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; but the requests were too close to the end of the comment period to extend it. On August 7, 2009, the Commission granted these requests and reopened the comment period until October 13, 2009 (74 FR 40124). Staff anticipates sending a recommendation to the Commission by December 2010. 
Agency: Federal Trade Commission(FTC)  Priority: Substantive, Nonsignificant 
RIN Status: Previously 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  05/14/2009  74 FR 22720   
ANPRM Comment Period Reopened  08/11/2009  74 FR 40121   
ANPRM Revised Comment Period End  10/13/2009    
Recommendation to the Commission  12/00/2010    
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