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ARTICLE · 15 JULY 2025

Eighth Circuit Vacates FTC's Negative Option Rule Just Before It Takes Effect

Davis+Gilbert LLP
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Just days before the Federal Trade Commission's Rule Concerning Subscriptions and Other Negative Option Plans (the "Rule") was set to take effect on July 14, the U.S. Court of Appeals...

United StatesMedia, Telecoms, IT, Entertainment
Paavana Kumar
Paavana Kumar
Alexa Meera Singh
Alexa Meera Singh
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Eighth Circuit Vacates FTC's Negative Option Rule Just Before It Takes Effect

The Bottom Line

  • The FTC's Rule Is Off — But Not Obsolete: The Eighth Circuit's decision may come as welcome news for businesses in the subscription industry, but companies should remember that a federal framework for enforcement still exists and that compliance with the Rule's spirit, which prioritizes consumer choice and transparency, may be essential to avoid a challenge.
  • Federal Enforcement Tools Remain: Even without the Rule, the FTC can continue to regulate unfair or deceptive practices under Section 5 of the FTC Act, ROSCA and the TSR.
  • State Laws Still Apply — and May Be Tougher: State-level automatic renewal laws remain enforceable and may impose stricter or different requirements than the now-vacated federal Rule. Businesses must return to a keen awareness of state-by-state variations in compliance requirements to manage the risk of Attorneys General action and consumer

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