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WASHINGTON — The Federal Trade Commission this week called for public comment on whether it should revise its Negative Option Rule to address deceptive or unfair practices.
The move is the latest step in the agency’s renewed rulemaking effort on negative option plans, after a federal court last year struck down a “click to cancel” rule intended to make it easier for consumers to end online subscriptions. Opponents of that rule argued the FTC exceeded its authority and failed to follow required procedures by not issuing a preliminary regulatory analysis.
In January, the FTC submitted a draft Advance Notice of Proposed Rulemaking, or ANPRM, on its Negative Option Rule to the Office of Information and Regulatory Affairs for review.
This week’s announcement seeks input on that ANPRM, stating, “The ANPRM asks the public: to weigh in on the current Rule; whether proposed amendments are needed; and about potential regulatory alternatives to address deceptive or unfair negative option practices.”
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said the agency believes new rulemaking may be warranted.
“Negative option subscriptions can offer procompetitive features to consumers and the marketplace more broadly by lowering transaction costs and ensuring consumers receive uninterrupted service,” Mufarrige said. “The Commission’s enforcement track record suggests, however, that negative option subscriptions continue to be plagued by difficult cancellation processes, unlawful retention tactics, and a suite of other impediments that prevent consumers from easily switching or ending subscription services. Neither consumers nor competition are protected when consumers are enrolled in programs that they either do not want or cannot cancel.”
The Negative Option Rule was first adopted in the 1970s to protect consumers from being automatically enrolled in subscription plans without their consent. As amended in 2024, the rule would have applied to nearly all negative option programs, including automatic renewal and free-to-pay offers. If the update had remained in effect, website operators likely would have been required to make substantial changes to their sign-up and cancellation practices.
The restarted rulemaking process could result in the FTC proposing the same changes again or advancing a similar set of revisions.
With the ANPRM now published in the Federal Register, the public comment period will remain open through April 13. Members of the public may submit comments during that period.
