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Stepped Up Enforcement Against Inadequate Negative Option/Automatic-Renewal Disclosures

Negative options have been defined by the FTC as commercial transactions in which sellers interpret a customer’s failure to take an affirmative action, either to reject an offer or cancel an agreement, as assent to be charged for goods or services. Common forms include continuity plans or the automatic renewal of subscription services pursuant to which a company extends on a payable basis a risk-free trial subscription, or renews a subscribed service by charging a consumer’s credit card or telephone service unless the consumer has affirmatively cancelled the service or the continued delivery of products.

Read more via the View Media link.