FTC Proposes Amending Negative Option Rule: Major Changes and Pitfalls Await Subscription Marketers

The FTC will be amending the current Negative Option Rule to expand its scope and add new requirements for companies that use a negative option feature in their offers. While some proposed changes mirror current state laws and card rules in this area, others are unique and more troublesome. Given that these novel and onerous requirements and missteps could result in penalties exceeding $50,000 per violation, CNP marketers must understand what awaits them should these proposals become law.


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