Federal Trade Commission Announces Final “Click-to-Cancel” Rule …
Oct 16, 2024 · The Commission’s updated rule will apply to almost all negative option programs in any media. The rule also will prohibit sellers from misrepresenting any material facts while using negative option marketing; require sellers to provide important information before obtaining consumers’ billing information and charging them; and require sellers to get consumers’ informed consent to the ...
FTC Finalizes Negative Option Rule Governing Subscriptions and …
2 days ago · Negative option marketing practices may violate [the CFPA] where a seller (1) misrepresents or fails to clearly and conspicuously disclose the material terms of a negative option program; (2) fails to obtain consumers’ informed consent; or (3) misleads consumers who want to cancel, erects unreasonable barriers to cancellation, or fails to ...
FTC Final Negative Option Rule: Changes and Impacts
2 days ago · The FTC expanded the final Rule to cover all negative option marketing. Negative option programs typically fall into four categories: prenotification plans, continuity plans, automatic renewals, and free trial conversion offers. While the prior version of the Rule applied only to prenotification plans [2] for the sale of goods, the Rule is now ...
FTC Finalizes Negative Option Rule Governing Subscriptions and …
23 hours ago · Negative option marketing practices may violate [the CFPA] where a seller (1) misrepresents or fails to clearly and conspicuously disclose the material terms of a negative option program; (2 ...
Click to Cancel: The FTC’s amended Negative Option Rule and …
Oct 16, 2024 · The rule applies to negative option marketing, including prenotification and continuity plans, automatic renewals, and free trial offers, whether the offer appears online, on the phone, or in person. And, importantly, the rule covers business-to-business transactions, as well as business-to-consumer transactions.
FTC Finalizes “Click to Cancel” Rule;… | Kelley Drye & Warren LLP
Oct 17, 2024 · Should it survive likely judicial challenge, the new Rule would significantly change marketing, consent, disclosure, and recordkeeping requirements for negative options while providing the agency with authority to seek redress and civil penalties for violations, including for misrepresentations…
New Federal ‘Click-to-Cancel’ Rule that Protects Consumers from …
Oct 17, 2024 · The new rule will take full effect 180 days after publication in the Federal Register. The FTC’s amended Negative Option Rule requires that: Important information must be truthful, clear, and easy to find. People have to know what they are agreeing to before they sign up.
Negative Option Rule - Federal Trade Commission
Oct 16, 2024 · Rule Summary. The Federal Trade Commission has proposed amendments to 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 ...
FTC Finalizes “Click-to-Cancel” Rule Regulating Free Trial- and ...
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FTC Finalizes Amendments to Negative Option Rule
4 days ago · In March 2023, we discussed the Federal Trade Commission’s (FTC) Notice of Proposed Rulemaking (NPRM) aimed at making it easier for consumers to cancel recurring subscriptions and memberships. The proposed rule was part of the FTC’s review of its Negative Option Rule, which sought to broaden its scope. Publication of the NPRM resulted in more than 16,000 comments from consumers, federal ...
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