Washington DC USA - July 3 2017: Federal Trade Commission seal sign and logo in downtown

FTC to Host Virtual Live-Stream Hearing on Proposed “Click to Cancel” Rulemaking

The Hearing will be Live Streamed on the FTC’s Website at 10 AM Eastern on January 16, 2024

FTC warns against subscription tricks and traps, steps up enforcementThe Federal Trade Commission (FTC) announced a virtual live-streamed hearing set for January 16, 2024, aimed at addressing concerns surrounding its proposed “Click to Cancel” provision, announced by the FTC on March 23, 2023. The initiative is part of an overarching review of amendments to the Negative Option Rule

The FTC’s proposed amendments, including the “click to cancel” provision, aim to revamp rules governing subscriptions and recurring payments to empower consumers with a straightforward, user-friendly method to terminate subscriptions, mirroring the ease with which they initially sign up. The proposal intends to combat deceptive practices it perceives as prevalent in subscription-based services spanning diverse sectors, from cosmetics to media subscriptions and gym memberships.

In response to the proposed amendments, the FTC received an overwhelming response, with over 1,100 comments. As part of the process, six non-governmental organizations who have objected to parts of the proposed amendments have been granted the opportunity to present their stances at the hearing. They are:

  • International Franchise Association (IFA)
  • TechFreedom
  • Performance Driven Marketing Institute (PDMI)
  • NCTA – The Internet & Television Association (NCTA)
  • FrontDoor
  • Interactive Advertising Bureau (IAB)

Per the FTC. these organizations will have a platform to articulate their perspectives on pertinent issues raised during the rulemaking process. 

The upcoming virtual hearing, scheduled to start at 10 a.m. ET, will be open to the public and streamed live on the FTC’s website. The event will feature oral presentations limited to ten minutes each from the participating organizations. The FTC has appointed Securities and Exchange Commission Administrative Law Judge Carol Fox Foelak to preside over the event. The Commission’s unanimous 3-0 vote solidifies the decision to move forward, with the notice anticipated to be published in the Federal Register imminently.

INSIDER TAKE

For an in-depth understanding of the Negative Option Rule, the proposed alterations, and their potential ramifications, explore our series titled “What You Need to Know About the FTC’s Proposed Changes to Negative Option Rule,” Part 1 and Part 2. It’s an insightful resource providing essential context and insight into this crucial regulatory review.

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