Negative Option Marketers Beware – the FTC is Deceptively Promoting a New Rule

Today the Commission announces a Notice of Proposed Rulemaking (NPRM) suggesting modifications to the Commission’s Rule Concerning the Use of Prenotification Negative Option Plans (Negative Option Rule). They are deceptively selling this new rule under the auspice that consumers need an easier way to cancel – one click cancellation. Among the several significant updates the FTC is proposing, the new rule would implement the following: • Requirement for simple cancellation mechanisms. The proposed rule would require sellers to make it at least as easy to cancel a service as it was to start it. For example, if consumers can sign up online, they must be able to cancel on the same website, in the same number of steps.