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The Federal Trade Commission (FTC) announced its final rule for negative options, dubbed the "click to cancel" rule because of the focus on cancellation methods. But the FTC's new rule covers more than just requirements for easy cancellation.
The new rule broadly applies to all negative option plans, in any media. This includes automatic renewal programs (commonly referred to as subscriptions), continuity plans, free-to-pay conversion or fee-to-pay conversions (such as free trials or promotional offers), and pre-notification negative option plans. Sellers of any of these negative option plans must comply with the rule—whether the plan is being sold to a consumer or to another business.
In this client alert authored by Advanced Media & Technology partner Robyn Mohr, featured in Westlaw Today, Robyn discusses the FTC’s final rule on media subscription cancellations, focusing on the new “click to cancel” requirements that mandate clear disclosures, simple cancellation methods and unambiguous consent to better protect consumers.
To read the full article, please visit Westlaw Today’s website.
The new rule broadly applies to all negative option plans, in any media. This includes automatic renewal programs (commonly referred to as subscriptions), continuity plans, free-to-pay conversion or fee-to-pay conversions (such as free trials or promotional offers), and pre-notification negative option plans. Sellers of any of these negative option plans must comply with the rule—whether the plan is being sold to a consumer or to another business.
In this client alert authored by Advanced Media & Technology partner Robyn Mohr, featured in Westlaw Today, Robyn discusses the FTC’s final rule on media subscription cancellations, focusing on the new “click to cancel” requirements that mandate clear disclosures, simple cancellation methods and unambiguous consent to better protect consumers.
To read the full article, please visit Westlaw Today’s website.
