United States of America: Announced FTC Amendments to Negative Option Rule

On 23 March 2023, the Federal Trade Commission (FTC) issued a notice of proposed rulemaking announcing amendments to the Negative Option Rule. Specifically, the FTC aims to introduce "click to cancel" requirements for platforms to incorporate in their interfaces to allow consumers to cancel their subscriptions easier. In particular, under the FTC amendments, platforms would be able to list new offers and additional sales as an alternative for cancelling subscriptions only if the consumer consents to see such options. Upon selecting a cancelling subscription, the cancellation should occur immediately when the consumer does not want to know about additional offers. Finally, platforms would be required to remind customers annually about their subscription or membership before the automatic renewal.