As we have reported previously, at the end of 2025, the Lina Khan-led Federal Trade Commission (“FTC”) completed the process of updating its Negative Option Rule by finalizing the Rule Concerning Recurring Subscriptions and Other Negative Option Programs (the “Final Rule”). The Final Rule’s expansive prohibition against misrepresenting any material fact made while marketing using a negative option feature went into effect on January 14, 2025, with the balance of the substantive requirements scheduled to go into effect this week on May 14, 2025. These provisions include the requirements to obtain a consumer’s express informed consent to the negative option feature before charging the consumer and to provide consumers with a simple mechanism to cancel the recurring charges.
On November 15, 2024, the Federal Trade Commission (“FTC”) published its amendments to its Negative Option Rule, retitled as the Rule Concerning Recurring Subscriptions and Other Negative Option Programs (the “Final Rule”) in the Federal Register.