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FTC RIN: 3084-AB60 Publication ID: Fall 2021 
Title: Use of Prenotification Negative Option Plans 

On October 2, 2019, the Commission issued an Advance Notice of Proposed Rulemaking for the Negative Option Rule (Trade Regulation Rule on Use of Prenotification Negative Option Plans) seeking public comments on the effectiveness and impact of the rule and whether the rule needs to be amended to help consumers avoid recurring payments for products and services they did not intend to order and allow them to cancel such payments without unwarranted obstacles. 84 FR 52393 (Oct. 2, 2019). The comment period closed on December 2, 2019.

The Negative Option Rule governs the operation of prenotification subscription plans. Under these plans, sellers ship merchandise 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: (1) requiring that promotional materials disclose the terms of membership clearly and conspicuously, and (2) establishing procedures for the administration of such "negative option" plans.

Agency: Federal Trade Commission(FTC)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Prerule Stage 
Major: Undetermined  Unfunded Mandates: No 
CFR Citation: 16 CFR 425   
Legal Authority: 15 U.S.C. 41 to 58   
Legal Deadline:  None
Action Date FR Cite
ANPRM  10/02/2019  84 FR 52393   
ANPRM Comment Period End  12/02/2019 
Next Action Undetermined  01/00/2022 
Regulatory Flexibility Analysis Required: Undetermined  Government Levels Affected: None 
Small Entities Affected: Businesses, Organizations  Federalism: No 
Included in the Regulatory Plan: No 
International Impacts: This regulatory action will be likely to have international trade and investment effects, or otherwise be of international interest.
RIN Information URL:  
RIN Data Printed in the FR: No 
Related RINs: Related to 3084-AB13 
Agency Contact:
Hampton Newsome
Federal Trade Commission
600 Pennsylvania Avenue NW,
Washington, DC 20580
Phone:202 326-2889