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|FTC||RIN: 3084-AB60||Publication ID: Spring 2023|
|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. On April 24, 2023, the Commission published a Notice of Proposed Rulemaking. 88 FR 24716 (Apr. 24, 2023). The comment period will close on June 23, 2023.
On November 4, 2021, the Commission issued a policy statement to provide guidance regarding its enforcement of various statutes and FTC regulations addressing negative option marketing and operating. 86 FR 60822 (Nov. 4, 2021).
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: Proposed Rule Stage|
|Major: Undetermined||Unfunded Mandates: No|
|CFR Citation: 16 CFR 425|
|Legal Authority: 15 U.S.C. 41 to 58|
|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: https://www.ftc.gov/news-events/news/press-releases/2023/03/federal-trade-commission-proposes-rule-provision-making-it-easier-consumers-click-cancel-recurring|
|RIN Data Printed in the FR: No|
|Related RINs: Related to 3084-AB13|
Federal Trade Commission
600 Pennsylvania Avenue NW,
Washington, DC 20580