The Federal Trade Commission (“FTC”) recently announced that after completing its review of the Negative Option Rule, it will keep the rule in its current form, effective August 1.
The “Trade Regulation Rule Concerning Use of Prenotification Negative OptionPlans” (“Negative Option Rule”) governs commercial transactions in which sellers interpret a customer’s failure to take an affirmative action, either to reject an offer or cancel an agreement, as acceptance of an offer and assent to be charged for goods or services.
The Negative Option Rule (“Rule”) has been under review since 2009 as part of the FTC’s systematic review of all current agency rules and guides to determine if the Rule should be expanded to cover additional types of negative option features other than the prenotification offers currently covered by the Rule.
FTC announced No Changes to Negative Option Rule
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