News & Analysis as of

Negative Option Rule

Venable LLP

FTC Makes Clear It Will Continue Regulating Subscription Services and Signals Enforcement Priority for Negative Option Rule in...

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This week, the Federal Trade Commission (FTC) filed a lawsuit in federal court against rideshare and delivery company Uber for allegedly deceptive subscription practices, including making it unreasonably difficult to cancel....more

Venable LLP

Negative Option and Continuity Marketing

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The Federal Trade Commission, state attorneys general, and class action plaintiffs continue to scrutinize negative option and continuity offers, including automatic renewals, free-to-pay conversions, and continuity programs....more

Venable LLP

FTC Files Brief Defending “Click to Cancel” Negative Option Rule

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Ending speculation and uncertainty about whether new leadership at the Federal Trade Commission (FTC) would repeal or continue to defend the agency’s Negative Option Rule, which regulates offerings such as autorenewal of...more

Vedder Price

An Offer You Can’t Refuse: The FTC’s New “Click-to-Cancel” Rule

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On January 14, 2025, the first part of the Federal Trade Commission’s (“FTC”) update to the Negative Option Rule went into effect. Negative options are contract terms that allow a seller to interpret a customer’s silence or...more

Troutman Pepper Locke

2024 Payments Year in Review: CFPB and FTC Regulatory Trends - Part Three — Payments Pros – The Payments Law Podcast

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In the third installment of the four-part "Payments Year in Review" series, hosts Keith Barnett, Josh McBeain, and Carlin McCrory discuss the Federal Trade Commission's (FTC) actions in 2024 and their expectations for 2025. ...more

Clark Hill PLC

FTC Finalizes Click-To-Cancel Rule

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The Federal Trade Commission (FTC) recently finalized and issued a new rule governing negative option features, like subscription or membership agreements with automatic renewal and recurring payment options. The rule,...more

Winthrop & Weinstine, P.A.

Q&A on Consumer Protection Law Changes: No more “Junk Fees,” “Taylor Swift” Ticket Upcharges, or Undisclosed Auto-renewal...

Starting this year, there are a swath of new state and federal consumer protection laws that have already or will soon go into effect, impacting a broad range of businesses across industry types. Whether you are an...more

Dorsey & Whitney LLP

FTC Finalizes Click to Cancel and Negative Option Rule

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On October 16, 2024, the Federal Trade Commission (FTC) announced a revision to its negative option rule. The rule, formally entitled the “Rule Concerning Recurring Subscriptions and Other Negative Option Programs,” is a...more

Venable LLP

Are Hyperlinked Disclosures "Clear and Conspicuous"? Yes, in some cases, according to the FTC's Final Negative Option Rule - A...

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The Federal Trade Commission's Final Negative Option Rule ("Click to Cancel Rule") contains stringent new requirements for negative option programs, making it even more difficult to run compliant negative option offers....more

Morris, Manning & Martin, LLP

FTC “Click to Cancel” Rule: What to Know Now

On October 16, 2024, the Federal Trade Commission (FTC) announced its final “Click to Cancel” Rule (the Rule) as a part of its ongoing review of its 1973 Negative Option Rule. The FTC revised the Rule to provide additional...more

BakerHostetler

[Podcast] AD Nauseam: FTC Negative Option Rule

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On today’s episode of AD Nauseam Amy and Daniel talk about the new FTC Negative Option Rule....more

Ballard Spahr LLP

Consumer Finance Monitor Podcast Episode: A Look at the FTC’s Click-to-Cancel Rule, with James Kohm, Associate Director of...

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Today’s podcast features James Kohm, the Associate Director for the Enforcement Division of the Federal Trade Commission’s Bureau of Consumer Protection. We discuss the FTC’s “Click-to-Cancel” Rule (consisting of significant...more

Kelley Drye & Warren LLP

With Uncertainty Surrounding the FTC’s Negative Option Rule, New California Requirements Wait in the Wings

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Last Friday, the FTC’s final Negative Option Rule was published in the Federal Register, starting the clock on the effective dates for the agency’s expansive overhaul of requirements related to goods or services sold through...more

Sheppard Mullin Richter & Hampton LLP

Click! FTC Updates Its Negative Option Rule

The FTC updated its Negative Option Rule last month and gave it a new name to emphasize the expanded scope of programs to which it applies. It will now be the “Rule Concerning Recurring Subscriptions and Other Negative Option...more

Morrison & Foerster LLP

The FTC Issues Final Rule on “Click-to-Cancel” and Negative Option Programs

After a multi-year process that was initiated in 2019, the U.S. Federal Trade Commission (FTC) has officially brought the 1973 Negative Option Rule into the 21st century, but not without opposition. The FTC has announced a...more

Lathrop GPM

New Click-To-Cancel FTC Rule Carries New Rules, Hefty Penalties for Violations

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Attention, any companies that sell direct to consumers: the FTC has announced a new final rule requiring businesses to make it easier for consumers to opt-out and cancel subscriptions. Businesses will have 180 days to comply...more

ArentFox Schiff

Click to Cancel – FTC Amends Negative Option Rule

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In an October 16, 2024, press release, the Federal Trade Commission (FTC) announced its final Negative Option Rule, requiring businesses to make it as easy for consumers to cancel their enrollment in recurring subscriptions...more

Moritt Hock & Hamroff LLP

FTC’s Final ‘Click to Cancel’ Rule on Negative Option Programs: What You Need to Know

On October 16, 2024, the Federal Trade Commission (FTC) announced its Final Rule revising its Negative Option Rule, now known as the Rule Concerning Recurring Subscriptions and Other Negative Option Programs (the Rule). The...more

K&L Gates LLP

Click-to-Cancel: FTC's Final Rule Will Change the Subscription Landscape Across Industries

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In an era where subscriptions are just a click away, getting out of them often frustrates consumers. Responding to that frustration, the Federal Trade Commission (FTC) revised its existing Negative Option Rule, now retitled...more

Troutman Pepper Locke

Lawsuit Filed Challenging FTC’s Final Negative Option Rule

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Earlier this week, we discussed the Federal Trade Commission’s (FTC) final amendments to the Negative Option Rule, now retitled the Rule Concerning Recurring Subscriptions and Other Negative Option Programs. These amendments,...more

Venable LLP

Business Groups Rush to File Federal Court Challenges to the FTC’s Negative Option “Click-to-Cancel” Rule

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As we previewed last week, industry and trade groups wasted no time in filing challenges against the Federal Trade Commission’s (FTC) Final Negative Option Rule....more

Ballard Spahr LLP

FTC issues final click to cancel rule to make it easier for consumers to cancel enrollment in negative option programs

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On October 16, the FTC issued its final amendments to the Negative Option Rule, which now applies to all negative option programs and includes a “click to cancel” provision intended to make it easier for consumers to cancel...more

Troutman Pepper Locke

Troutman Pepper Weekly Consumer Financial Services Newsletter- October 2024 # 4

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To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week...more

Polsinelli

FTC’s “Click-to-Cancel” Rule on Subscriptions and Renewals

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What’s Happening? On October 16, 2024, the Federal Trade Commission (“FTC”) finalized a rule that, once effective, requires businesses to provide their customers with an easy method of cancelling or terminating “negative...more

DLA Piper

FTC Finalizes "Click-to-cancel" Rule: Top Points

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On October 16, 2024, the Federal Trade Commission (FTC) finalized significant updates to the Negative Option Rule. The amendments to the rule, now titled the “Rule Concerning Recurring Subscriptions and Other Negative Option...more

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