Negative Option Rule

Document Headings Document headings vary by document type but may contain the following: the agency or agencies that issued and signed a document the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to the agency docket number / agency internal file number the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details. Federal Trade Commission 16 CFR Part 425 RIN 3084-AB60 AGENCY: Federal Trade Commission. ACTION: Final rule. SUMMARY: The Federal Trade Commission (“FTC” or “Commission”) issues final amendments to the Commission's trade regulation “Rule Concerning Use of Prenotification Negative Option Plans,” retitled the “Rule Concerning Recurring Subscriptions and Other Negative Option Programs” (“Rule,” “final Rule” or “Negative Option Rule”). The final Rule now applies to all negative option programs in any media. This document also contains the text of the final Rule, the Rule's Statement of Basis and Purpose (“SBP”), and a final regulatory analysis. DATES: Effective date: This rule is effective January 14, 2025. Compliance date: Regulated entities have until May 14, 2025 to comply with §§ 425.4 through 425.6. ADDRESSES: Relevant portions of the record of this proceeding, including this document, are available at https://www.ftc.gov . FOR FURTHER INFORMATION CONTACT: Katherine Johnson, Attorney, (202) 326-2185, kjohnson3@ftc.gov , Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Ave. NW, Washington, DC 20580. SUPPLEMENTARY INFORMATION: I. Overview The Commission commenced this proceeding because it had reason to believe unfair and deceptive negative option practices are widespread in the marketplace. Negative option programs …