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FTC Reopens Negative Option Rulemaking, Seeks Public Comment by April 13

The action responds to an appellate vacatur of earlier amendments to rebuild an empirical record on modern subscription models.

Overview

  • The FTC issued an Advance Notice of Proposed Rulemaking on March 11 and published it in the Federal Register on March 13, opening a 30‑day comment window that closes April 13, 2026.
  • Comments are requested on the prevalence and operations of subscription and auto‑renewal programs, consumer consent and cancellation experiences, disclosures, compliance costs, and effects on competition and small businesses, with the agency citing over 100,000 related complaints in five years.
  • The notice asks whether to retain the current rule, incorporate concepts from the vacated 2024 update—such as clear disclosures, express informed consent, simple cancellation, and record retention—or pursue nonregulatory options like education.
  • The existing Negative Option Rule covers only traditional prenotification continuity plans and does not reach many modern models like streaming subscriptions or free‑to‑paid trials.
  • No new substantive requirements are in effect as the FTC continues enforcement under Section 5 of the FTC Act, ROSCA, and the Telemarketing Sales Rule, referencing recent cases involving Vonage, Amazon, Adobe, and Instacart.