FTC Proposes Negative Option Rulemaking for Comment

FTC Proposes Negative Option Rulemaking for Comment

October 21, 2019, Covington Alert

The Federal Trade Commission (“FTC”) has published a request for public comment on “ways to improve its existing regulations for negative option marketing.” 84 Fed. Register 52393 (October 2, 2019). The FTC acknowledges that negative option plans, such as prenotification negative option plans, continuity plans, and free trial and conversion plans, “can provide benefits to both sellers and consumers,” but the agency nevertheless continues to receive complaints from consumers about such plans.