AGs React Positively to FTC’s Proposed Negative Option Rule

  • A coalition of 26 AGs filed a comment letter in support of the FTC’s proposed amendments to the Negative Option Rule, which is meant to prohibit the unfair or deceptive use of negative option marketing whereby a company takes a consumer’s silence as acceptance of an offer.
  • In particular, the FTC’s proposed rulemaking includes a “click to cancel” provision that would require sellers to make it as easy for consumers to cancel their enrollment in recurring subscriptions and memberships as it was to sign up.
  • The AGs’ letter urges the FTC to include additional provisions in its rulemaking, such as requiring businesses offering free trials to obtain additional consumer consent before charging them at the completion of the free trial.