The FTC has issued a new Enforcement Policy Statement Regarding
Negative Option Marketing (Policy Statement), generally warning
companies about their compliance obligations relating to negative
option programs and against using website design features to
deceive consumers into signing up for subscription services (i.e.
by using "dark patterns").
The Policy Statement was released in light of an uptick in the
number of consumer complaints citing harm caused by deceptive
recurring subscription practices, such as billing consumers for
unauthorized charges or making it difficult for consumers to cancel
a subscription.
Subscription Programs Grow in Popularity
Negative option programs include automatic renewals, continuity
plans, free-to-pay or fee-to-pay conversions and prenotification
plans. These subscription-type programs have become increasingly
popular in recent years, especially as retailers and other service
providers have recognized that significant revenues
