Petition for Rulemaking of Central Office of Reform and Efficiency (Negative Option Rule)
Summary
The Federal Trade Commission is proposing updates to rules that govern 'negative option' billing—those automatic subscription charges and free trial offers that automatically convert to paid memberships. The rule aims to make it easier for consumers to cancel subscriptions and require companies to be clearer about their terms before charging customers.
Key Points
- 1Companies must make it as easy to cancel a subscription as it was to sign up for it
- 2Businesses must get clear consent from customers before charging them and remind them before renewal dates
- 3The FTC is seeking public feedback on these changes through February 21, 2025
- 4The rule affects any company offering free trials, memberships, or automatic recurring charges
- 5Violations can result in fines and refunds to consumers who were wrongly charged
Key Dates
January 21, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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