FTC Defers Negative Option Rule Compliance Deadline By 60 Days

The Federal Trade Commission (FTC or Commission) on May 9, 2025, voted to defer the compliance deadline for the amended Negative Option Rule (Rule) by 60 days "given the complexities" of conforming to the amended Rule. Businesses now have until July 14, 2025, to come into compliance with the Rule's requirements, including providing additional disclosures, consents and simple cancellation protocols for all sales (including business-to-business) with a negative option feature, such as auto-renewing subscriptions and sales. Though uncertainty abounded about whether the FTC would enforce the Rule – with its newly appointed Commissioners who previously dissented during rulemaking and the dismissal of two Democratic Commissioners – all signs point to active enforcement once the Rule goes into effect on July 14.