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FTC Negative Option Rule 2024 Subscription Cancellation and Disclosure Requirements

The FTC Negative Option Rule (16 CFR Part 425, finalized October 2024, effective January 2025) prohibits deceptive negative option marketing by requiring…

What FTC Negative Option Rule 2024 Subscription Cancellation and Disclosure Requirements requires

The FTC Negative Option Rule (16 CFR Part 425, finalized October 2024, effective January 2025) prohibits deceptive negative option marketing by requiring clear and conspicuous disclosure of all material subscription terms before consumer consent, express informed written consent before any charge, a simple click-to-cancel mechanism as easy as sign-up, and annual reminders for continuous subscriptions - with civil penalties up to USD 51,744 per violation.

Pillar: Operations & CX · Authority: Federal Trade Commission (FTC) · Version: 1.0.0 · Last updated:

Primary source: https://www.ecfr.gov/current/title-16/chapter-I/subchapter-C/part-425

SHA-256 integrity: f34e5cf4fc94732ca47f12e97ead5d47af720132d9819d7c4be5aa17919b3c93

Primary Citations — 6 traced to source

  • FTC Negative Option Rule, 16 CFR Part 425, Section 3(a): It shall be a violation of this Rule and an unfair or deceptive act or practice for any seller to fail to disclose clearly and conspicuously all material terms of a negative option feature before obtaining the consumer's billing information.
  • FTC Negative Option Rule, 16 CFR Part 425, Section 3(b): It shall be a violation of this Rule for any seller to charge any consumer for a negative option feature without first obtaining the consumer's express informed consent to the negative option feature.

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