Comments due on FTC's proposed changes to Negative Option Rule

The Federal Trade Commission is issuing a Notice of Proposed Rulemaking (NPRM) that would include a "click to cancel" provision requiring sellers to make it as easy for consumers to cancel their enrollment as it was to sign up. The new click to cancel provision, along with other proposals, would go a long way to rescuing consumers from seemingly never-ending struggles to cancel unwanted subscription payment plans for everything from cosmetics to newspapers to gym memberships.

The NPRM is part of the FTC’s ongoing review of its 1973 Negative Option Rule, which the agency uses to combat unfair or deceptive practices related to subscriptions, memberships, and other recurring-payment programs. The proposal also includes new requirements before making additional offers, and would require an annual reminder to consumers enrolled in negative option programs involving anything other than physical goods, before they are automatically renewed.

Comments will be accepted for 60 days following the publication of the NPRM in the Federal Register.

• FTC press release
• Fact sheet on the proposal
• Publication and comment period update: Published at 88 FR 24716 in the April 24, 2023, Federal Register, with a 60-day comment period ending 6/23/2023.