Negative option rule

A "negative option" is any deal where the seller treats doing nothing as a yes. Subscriptions that auto-renew, free trials that turn into paid plans, and clubs that ship unless you decline are all negative option offers. The rule and its history: - The FTC's original Negative Option Rule dates from 1973 and covers prenotification plans, such as book and music clubs that ship unless members say no. - In October 2024 the FTC finalized amendments, widely called the "click-to-cancel" rule, that would have covered most auto-renewing subscriptions and required simple cancellation. - On July 8, 2025, the US Court of Appeals for the Eighth Circuit vacated those amendments on procedural grounds, before they took effect. The original 1973 rule still applies. (Checked October 17, 2026. Check the FTC's website for the current status before relying on this.) Other rules still apply. The federal Restore Online Shoppers' Confidence Act (ROSCA) requires online sellers to disclose the terms clearly, get the customer's express consent before charging, and provide a simple way to stop recurring charges. The FTC enforces it. Many states also have their own automatic renewal laws. What that means in practice: - Show the price, how often it's charged and how to cancel before checkout. - Get a clear yes, such as a checkbox or a plainly labeled button. - Make cancelling online about as easy as signing up. This is general information, not legal advice. Ask a lawyer about the rules that apply to your business.