Federal Trade Commission Proposed Rule

2023-26946: Negative Option Rule

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Summary

The Federal Trade Commission ("FTC" or "Commission") has proposed amendments to the "Rule Concerning the Use of Prenotification Negative Option Plans," to be retitled the "Rule Concerning Subscriptions and Other Negative Option Plans" ("Negative Option Rule" or "Rule"). The proposed changes are calculated to combat unfair or deceptive business practices, including recurring charges for products or services consumers do not want and cannot cancel without undue difficulty. In response to the notice of proposed rulemaking, several commenters requested an informal hearing. The informal hearing will be conducted virtually on January 16, 2024, at 10 a.m. Eastern, and the Commission's Chief Presiding Officer, the Chair, has appointed Administrative Law Judge for the Securities and Exchange Commission, the Honorable Carol Fox Foelak, to serve as the presiding officer of the informal hearing.

The agency’s own summary, as published.

What this changes

Amends 1 part of the Code of Federal Regulations — the standing rules this notice rewrites.

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