FTC Draft Rulemaking on Negative Option Plans Submitted for Review
Summary
The FTC has submitted a draft Advance Notice of Proposed Rulemaking (ANPRM) concerning its Negative Option Rule to the Office of Management and Budget (OMB) for review. This action indicates the agency is considering potential revisions or new regulations related to negative option plans, which are common in subscription services.
What changed
The Federal Trade Commission (FTC) has submitted a draft Advance Notice of Proposed Rulemaking (ANPRM) regarding its Rule Concerning the Use of Prenotification Negative Option Plans to the Office of Information and Regulatory Affairs (OIRA) for review. This submission signifies the FTC's intent to potentially revise or expand regulations governing negative option plans, often referred to as subscription services where a consumer's silence or inaction is interpreted as consent to a purchase. The ANPRM is considered a "significant regulatory action" requiring OMB review.
Once OIRA completes its review, the FTC will publish the ANPRM in the Federal Register, at which point consumers will be able to submit comments. This process is the initial step in potential rulemaking and will allow the FTC to gather information and public input before proposing specific regulatory changes. Businesses utilizing negative option plans should monitor this development as it could lead to new compliance obligations or stricter enforcement in the future.
Source document (simplified)
- Consumer Protection
- Bureau of Consumer Protection
- Advertising and Marketing
- Online Advertising and Marketing
- Telemarketing
- Payments and Billing The Federal Trade Commission announced today that it has submitted a draft Advance Notice of Proposed Rulemaking (ANPRM) concerning the agency’s Rule Concerning the Use of Prenotification Negative Option Plans, commonly known as the Negative Option Rule, to the Office of Information and Regulatory Affairs (OIRA) within the Office of Management and Budget.
Executive Orders 12866 and 14215 require all executive branch departments and agencies to submit their proposed and final “significant regulatory actions” for review by OIRA. OIRA determined that the planned ANPRM is a “significant regulatory action” and must undergo review before the FTC issues it.
Once OIRA completes its review, the FTC can publish the planned ANPRM in the Federal Register. The FTC will provide instructions at that time on how consumers can submit comments to the ANPRM.
The Commission vote approving the planned ANPRM submission for OIRA review was 2-0 .
The lead attorney on this matter is Hong Park in the FTC’s Bureau of Consumer Protection.
The Federal Trade Commission works to promote competition and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
Contact Information
Media Contact
Mitchell J. Katz Office of Public Affairs 202-257-3814
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