{"id":48552,"date":"2025-01-26T12:07:27","date_gmt":"2025-01-26T12:07:27","guid":{"rendered":"https:\/\/peraltafinancing.com\/advertising\/how-about-we-strengthen-the-ftcs-negative-option-rule\/"},"modified":"2025-01-26T12:07:27","modified_gmt":"2025-01-26T12:07:27","slug":"how-about-we-strengthen-the-ftcs-negative-option-rule","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=48552","title":{"rendered":"How About We Strengthen the FTC’s Negative Option Rule?"},"content":{"rendered":"


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How many recurring subscriptions do you have? And how many of these companies with your credit card info contact you before they automatically renew? Only a small percentage of my subscription-based relationships do me the favor (after I change my auto-renew preferences), and I imagine the same is true for you.<\/p>\n

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The FTC uses the phrase \u201cnegative option marketing\u201d broadly to refer to a category of commercial transactions in which sellers interpret a customer\u2019s failure to take an affirmative action, either to reject an offer or cancel an agreement, as assent to be charged for goods or services.<\/p>\n

According to The National Law Review<\/a><\/em>, The Federal Trade Commission<\/a> has recently finalized amendments to the Negative Option Rule, which represents a significant overhaul of the regulatory framework governing how companies handle subscription services and automatic renewals. The original rule, established in 1973, was focused primarily on protecting consumers from deceptive practices in physical goods such as book and record clubs. However, with the rise of e-commerce, the need for more robust protections for online subscriptions has grown significantly. The FTC\u2019s amendments aim to address these issues and bring more transparency and fairness to this business model.<\/strong><\/p>\n

Naturally, companies that rely on subscription incomes\u2014and there are millions of them from Amazon to Apple on down\u2014don\u2019t want to change. Thus, the Interactive Advertising Bureau (IAB), along with a coalition of leading trade associations, filed a lawsuit against the Federal Trade Commission<\/a> challenging its changes to rules governing subscription renewals. The suit asserts that the FTC failed to adhere to proper procedures, including conducting a comprehensive economic analysis.<\/p>\n

Lartease Tiffith, IAB\u2019s Executive Vice President for Public Policy, said, \u201cWhile IAB supports reasonable regulation, these new rules threaten a business model essential to companies of all sizes across various industries\u2014and to consumers. The FTC\u2019s rules could eliminate free trials and straightforward renewals, replacing them with cumbersome forms and legal jargon\u2013ultimately costing consumers both time and money,\u201d he added.<\/p>\n

IAB says it wants to save people time and money, but is IAB truly on the side of the customer, or \u201cuser\u201d to use tech\u2019s jargon? I\u2019m a subscriber to multiple services and I want to opt in every time<\/em>. I\u2019d also like to suggest that brands and their representatives have to be on the customer\u2019s side, consistently and company-wide, or suffer <\/em>the consequences of a tainted reputation and diminished sales.<\/p>\n

Related<\/em><\/h3>\n<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

How many recurring subscriptions do you have? And how many of these companies with your credit card info contact you before they automatically renew? Only a small percentage of my subscription-based relationships do me the favor (after I change my auto-renew preferences), and I imagine the same is true for you. The FTC uses the […]<\/p>\n","protected":false},"author":1,"featured_media":48553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12023],"tags":[28988,14485,20805,7318,22075],"dealstore":[],"offerexpiration":[],"class_list":["post-48552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advertising","tag-ftcs","tag-negative","tag-option","tag-rule","tag-strengthen"],"yoast_head":"\nHow About We Strengthen the FTC's Negative Option Rule? - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=48552\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How About We Strengthen the FTC's Negative Option Rule? - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"How many recurring subscriptions do you have? 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