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ARTICLE · 18 OCTOBER 2024

'Click To Cancel' Is Here, As FTC Announces Final Negative Option Rule

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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The Federal Trade Commission today (finally) announced its final "click-to-cancel" rule, which imposes new requirements on negative option programs in all forms ...

United StatesMedia, Telecoms, IT, Entertainment

The Federal Trade Commission today (finally) announced its final "click-to-cancel" rule, which imposes new requirements on negative option programs in all forms (including electronic media, telephone, print and in-person transactions) in an attempt to combat unfair or deceptive practices related to subscriptions, memberships and other recurring-payment programs. The updated rule, called the "Rule Concerning Recurring Subscriptions and Other Negative Option Programs," amends the FTC's outdated 1973 Negative Option Rule, which applied only to one form of negative option marketing (pre-notification plans for the sale of goods).

Among the final rule's key provisions:

  • Scope. Not only does the final rule apply to almost all negative option marketing, including pre-notification and continuity plans, automatic renewals and free trial offers—whether they appear online, via phone, in print or in person—but it also covers, per the FTC's blog post, business-to-business,

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www.fkks.com

This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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