2024 was another big rulemaking year for the FTC. At the end of October, the FTC issued its final Negative Option Rule, which has created quite a stir in the marketing community. Faced with a flurry of court challenges and a different political landscape following the 2024 elections, it is possible that the Negative Option Rule will have a short life span. Despite its uncertain future, the requirements and principles set forth in the Rule align with many of the state automatic renewal laws and may continue to inform how states regulate automatic renewal programs and enforce their laws.
In this episode of Perfect Balance: An Advertising Law Podcast, host Po Yi is joined by Manatt Consumer Protection partners J.J. Rodriguez and Bez Stern to examine and discuss the key provisions of the Negative Option Rule and their implications, and how the same issues are being addressed by states, including the recent amendments to California’s Automatic Renewal Law.
To access the other episodes of this podcast, please click here.
Additional Resources:
Manatt Practice Pages:
Advertising, Marketing and Media
Consumer Protection
Federal Trade Commission
Articles:
FTC Releases “Click-to-Cancel” Negative Option Rule, Broadly Expanding its Regulatory Authority - Manatt, Phelps & Phillips, LLP
Tracking the Uncertainty of the FTC's Negative Option Rule
Podcasts:
Episode 28: The Subscription and Continuity Product Conundrum: What the FTC’s proposed Negative Option Rule and State Automatic Renewal Laws Mean for Marketers
Episode 16: Recent Developments in State Automatic Renewal Laws and Compliance and Enforcement for M - Manatt, Phelps & Phillips, LLP