Negative Option Marketing Federal Laws & Resources
The FTC provides guidance and enforces The Negative Option Rule. The rule applies to sellers of subscription plans who ship merchandise to consumers who have agreed in advance to become subscribers with a recurring fee. The Rule requires ads to clearly and conspicuously disclose material information about the terms of the recurring plan. Once consumers agree to enroll, the company must notify them before shipping the merchandise to allow them to decline the shipment. Companies should clearly disclose the terms and conditions of the plan before billing consumers or charging their credit cards, even if they don’t think an automatic shipment or continuity program doesn't fall within the specifics of the Rule. CLIClaw offers a comprehensive suite of legal compliance resources designed to empower businesses and professionals with the knowledge they need to navigate the complexities of U.S. laws. You gain exclusive access to a curated collection of links to relevant statutes, detailed articles, and official documents, ensuring you stay informed about regulatory requirements and legal updates. Whether you're seeking clarity on specific regulations or staying abreast of changes in the legal landscape, our platform provides the essential tools and information to support effective compliance and risk management.