FTC Announces Hearing on Proposed Changes to Negative Option Rule

The Federal Trade Commission (FTC) announced it will hold a virtual informal hearing on January 16, 2024, at 10 am ET on proposed amendments to the Negative Option Rule. During the hearing, six organizations that requested to present their positions orally will testify on issues raised during the rulemaking process. Out of more than 1,100 commenters, the six entities that requested to present their positions include: the International Franchise Association, TechFreedom, Performance Driven Marketing Institute, NCTA – the Internet & Television Association, FrontDoor and the Interactive Advertising Bureau (IAB). The FTC announced the proposed rulemaking on March 23 regarding changes to automatic renewal provisions for companies offering subscriptions and recurring payments. The Alliance submitted comments on June 23 reiterating that negative option subscription plans are already heavily regulated both at the Federal and state level and that the FTC has adequate existing authority to act in this area. The Alliance also recommended that the FTC only enact regulations that are consistent with existing best practices and established state laws. We will keep you apprised of this issue.


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