If you sell goods and services to consumers through automatically renewing payment plans, free or discounted trials that convert into full plans, or other “negative option features” that interpret a consumer’s silence as permission to keep charging them, you should monitor and consider submitting comments on the Federal Trade Commission’s proposed Negative Option Rule. The proposed rule would impose detailed transparency, consent, simple cancellation and annual reminder requirements on companies that use any medium to offer recurring subscriptions for products or services, and allow the FTC to seek civil penalties of over USD 50,000 per violation and consumer redress for violations.
What do Cardi B, Jordin Sparks and Alexa PenaVega have in common? If you guessed they each received warning letters from the Federal Trade Commission (“FTC”) last week, you are correct. The FTC sent letters to these three celebrities as well as seven other social media influencers warning that their…