Negative reinforcement? FTC proposes amending Negative Option Rule to include click-to-cancel and other protections

Negative reinforcement? FTC proposes amending Negative Option Rule to include click-to-cancel and other protectionsBut as decades of FTC law enforcement makes clear, when negative options are tainted with untruths, half-truths, and hidden strings, the impact on consumers can be, well, negative.

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Provider:

FTC

URL:

https://www.ftc.gov/business-guidance/blog/2023/03/negative-reinforcement-ftc-proposes-amending-negative-option-rule-include-click-cancel-other

Retrieved on:

Monday, July 24, 2023

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Geotags:

HOUSTON, UNITED STATES

Summary

Key Points:

Negative reinforcement? FTC proposes amending Negative Option Rule to include click-to-cancel and other protections

But as decades of FTC law enforcement makes clear, when negative options are tainted with untruths, half-truths, and hidden strings, the impact on consumers can be, well, negative.
That’s why the FTC is asking for public comment on proposed amendments to its Negative Option Rule designed to combat unfairness and deception.
However, the current Negative Option Rule applies only to prenotification plans, an older (and frankly, fading) business model.
Given the narrow scope of the existing Negative Option Rule, the time seems right for a rethink.
A second reason why the FTC is asking for your feedback about proposed changes to the Rule is because problematic negative option practices continue to inflict consumer injury.