Still Can’t Cancel That Gym Membership? FTC Proposes One Negative Option Rule To Rule Them All

Commission proposes to modernize, expand, and rename its outdated and underpowered Negative Option Rule

The FTC published a notice of proposed rulemaking on 23 March to update its 1973 Negative Option Rule, which has become obsolete vis-à-vis new marketing strategies in today’s digital world. Proposed amendments would clarify, expand and consolidate negative option-related provisions currently dispersed across different FTC laws and regulations.

The Federal Trade Commission is proposing amendments to its 50-year-old Negative Option Rule because the scope of the current rule is too narrow to address the variety of negative option practices employed by marketers today.

The agency published a notice of proposed rulemaking on 23 March as part of its ongoing review of the 1973 Negative Option Rule

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on HBW Insight for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Marketing & Advertising

NAD Refers Men’s Hair Color Brand To FTC For Non-Compliance With Fast-Track SWIFT Decision

 

Plano, Texas-based Simpler Hair Color Inc. may face FTC enforcement action after it failed to comply with the National Advertising Division’s recommendations it discontinue the claim, “Rated #1 Men’s Hair Color,” associated with a consumer review website.

NAD Under New Head Marcus Targets ‘AI Washing,’ Ads For Children

 

The National Advertising Division will pursue advertising that boasts the benefits of artificial intelligence before those benefits are actually achieved, says new NAD head Phyllis Hurwitz Marcus in an interview.

BBB National Programs Appoints Former FTC Children’s Privacy Head To Lead NAD

 

The BBB National Programs, Inc. announces Phyllis Hurwitz Marcus, who served the FTC for nearly two decades, will take the reins of the National Advertising Division, replacing Laura Brett.

NAD/CARU Review Of Beauty Firm’s Social Media Posts Shows Impact Of ‘Sephora Kids’ Trend

 

BBB National Programs’ NAD and CARU divisions jointly reviewed the social media posts of New York firm Bubble Beauty, finding the company could support claims of safety, but not efficacy, of its skin care products for children under 13.

More from Business

Estee Lauder Lowers FY 2025 Outlook, Expects Positive Results FY 2026 On ‘Beauty Reimagined’

 

The Estee Lauder Companies reported a 10% drop in reported sales during its fiscal third quarter presentation on a 28% decline in travel retail organic sales. The firm, which lowered its FY 2025 sales expectations, says it expects positive growth in FY 2026.

Coty’s Next Phase Of ‘All-In To Win’ Strategy Should Generate $130M Savings

 

Coty’s ‘All-in to Win’ program enters the next phase, which sets aggressive savings over the next two years in part by simplifying and scaling its operating model, in addition to boosting its innovation impact.

P&G: Innovation, Pricing ‘Short-Term Levers’ For Tariffs Adding Up To $1.5Bn In Costs Annually

 

The Procter & Gamble Company is working to mitigate the impact of tariffs, which will add up to $1.5bn in costs annually. The firm has lowered its fiscal 2025 outlook.