FTC to Hold Virtual Hearing on Proposed Amendments to Negative Option Rule

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The Federal Trade Commission (FTC) has announced a virtual informal hearing to be held on January 16, 2024, regarding proposed amendments to the Negative Option Rule. The hearing will feature six nongovernmental organizations providing oral statements addressing issues raised during the rulemaking process.

In March 2023, the FTC proposed several key updates to its rule concerning subscriptions and recurring payments. Notably, these included a “click to cancel” provision, requiring sellers to make it as easy for consumers to cancel their enrollment as it was to sign up. These proposals are aimed at helping consumers escape ongoing struggles to cancel unwanted subscription payment plans for a wide range of services and goods.

Six of the over 1,100 commenters on the proposed rulemaking requested to present their positions at this upcoming hearing. These include the International Franchise Association, TechFreedom, the Performance Driven Marketing Institute, NCTA – The Internet & Television Association, FrontDoor, and the Interactive Advertising Bureau.

According to the Federal Register notice, these entities will have the opportunity to make oral presentations at the informal hearing, each limited to 10 minutes. They may also submit written documents to the FTC within 14 days of the notice’s publication in the Federal Register. All submissions will become part of the public record.

Securities and Exchange Commission Administrative Law Judge Carol Fox Foelak will preside over the virtual hearing, which is set to begin at 10 a.m. ET. The webcast link for the hearing will be available on the FTC’s website shortly before the event date.

The Commission vote approving the publication of the notice was unanimous at 3-0. The notice will be published in the Federal Register in due course.

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