What US FTC Negative Option Rule 2023 - Subscription Traps: Clear and Conspicuous Disclosure of Recurring Charges, Simple Cancellation Mechanism (Same Ease as Signup), Pre-Sale Disclosure Requirements, Annual Reminders and Civil Penalties for Violations requires
The FTC's Negative Option Rule requires sellers using recurring subscription plans to provide clear and conspicuous disclosures before obtaining consumer consent, ensure cancellation is as easy as enrollment, and send annual reminder notices. These requirements are designed to prevent unintended recurring charges and are enforced under 16 CFR Part 425.
Pillar: Sales, Marketing & PR · Authority: Federal Trade Commission · Version: 1.0.1 · Last updated:
Primary source: https://www.ftc.gov/legal-library/browse/rules/negative-option-rule
SHA-256 integrity: 160127e86b2292428aeb5513516030ae5a3ab83193a3b4dc210bad690d1bc23a
Primary Citations — 5 traced to source
- Negative Option Rule, https://www.ftc.gov/legal-library/browse/rules/negative-option-rule, 16 CFR Part 425, 2024
- Negative Option Rule; Proposed Rule; Request for Public Comment, https://www.ftc.gov/legal-library/browse/rules/negative-option-rule, April 24, 2023
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