Ftc Votes to Delay Enforcement of Negative Option Rule

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a day ago

Summary

The FTC has voted to delay the enforcement of its Negative Option Rule by 60 days. This rule aims to make it easier for consumers to cancel subscriptions. The FTC delayed the enforcement of some provisions earlier this year, and now it is delaying the enforcement of all provisions. The commission voted 3-0 to delay enforcement.

Key Points

The FTC's Negative Option Rule requires companies to provide a clear and easy way for consumers to cancel subscriptions.
The rule applies to businesses that sell physical and digital subscriptions through simple signup flows.
Companies are required to provide relevant information about cancellation before they collect customers' payment information.

Why It Matters

This delay in enforcement may give companies more time to comply with the rule, but it also means that consumers may face further difficulties in cancelling their subscriptions.

Author

Anthony Ha

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