FTCFinal Rule
Revision of the Negative Option Rule, Withdrawal of the CARS Rule, Removal of the Non-Compete Rule To Conform These Rules to Federal Court Decisions
Finance & BankingLabor & WorkplaceTechnology
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Summary
The FTC is updating three consumer protection rules to match recent court decisions: it's revising rules about automatic billing and cancellations, withdrawing a rule about car sales practices, and removing a rule restricting non-compete agreements. These changes ensure the rules follow what federal courts have decided they should be.
Key Points
- 1The Negative Option Rule is being revised to better protect consumers who sign up for automatic recurring charges (like monthly subscriptions) and make it easier to cancel
- 2The CARS Rule about used car sales practices is being completely withdrawn because courts found problems with how it was written
- 3The Non-Compete Rule restricting employers from banning workers from joining competitors is being removed due to federal court rulings against it
- 4These changes affect millions of consumers and workers, including anyone with subscriptions, car buyers, and employees across all industries
- 5Companies must comply with the updated rules, which may change how they handle billing, sales, and employment practices
Key Dates
Published
February 12, 2026
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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