Still Can’t Cancel That Gym Membership? FTC Proposes One Negative Option Rule To Rule Them All

Commission proposes to modernize, expand, and rename its outdated and underpowered Negative Option Rule

The FTC published a notice of proposed rulemaking on 23 March to update its 1973 Negative Option Rule, which has become obsolete vis-à-vis new marketing strategies in today’s digital world. Proposed amendments would clarify, expand and consolidate negative option-related provisions currently dispersed across different FTC laws and regulations.

The Federal Trade Commission is proposing amendments to its 50-year-old Negative Option Rule because the scope of the current rule is too narrow to address the variety of negative option practices employed by marketers today.

The agency published a notice of proposed rulemaking on 23 March as part of its ongoing review of the...

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