What do I Need to Know about Negative Option Offers?

What do I Need to Know about Negative Option Offers?

The Negative Option Rule applies to sellers of subscription plans who ship merchandise like books or compact discs to consumers who have agreed in advance to become subscribers. The Rule requires ads to clearly and conspicuously disclose material information about the terms of the plan. Further, once consumers agree to enroll, the company must notify them before shipping to allow them to decline the merchandise. Even if an automatic shipment or continuity program doesn't fall within the specifics of the Rule, companies should be careful to clearly disclose the terms and conditions of the plan before billing consumers or charging their credit cards.

 

Stay Ahead of the Curve! Explore our comprehensive CLIClaw Negative Option Marketing Compliance Library for in-depth resources and insights.

 

These materials were obtained directly from the Federal Government public website and are posted here for your review and reference only.  No Claim to Original U.S. Government Works.  This may not be the most recent version.  The U.S. Government may have more current information.  We make no guarantees or warranties about the accuracy or completeness of this information, or the information linked to.  Please check the linked sources directly.