On March 11, 2026, the Federal Trade Commission (FTC) announced an Advance Notice of Proposed Rulemaking (ANPRM) highlighting its Rule Concerning the Use of Prenotification Negative Option Plans, seeking comment on whether the rule should be amended or supplemented to better address deceptive or unfair negative option practices.
The FTC describes negative options as marketing arrangements in which a consumer’s silence or failure to act is treated as consent to be charged for goods or services. Negative option marketing includes automatic renewals, continuity programs, free-to-pay conversions, and prenotification plans. Regulators generally focus on several considerations:
- Are material terms clearly disclosed?
- Did the seller obtain express informed consent?
- Is cancellation simple and effective?
Consistent with that focus, the FTC’s March 11th notice seeks input on practices that prevent consumers from understanding key terms, lead to enrollment without express informed consent, or deter cancellation.
The FTC’s enforcement posture in this area has been active for years and is unlikely to soften. The agency cites ongoing concerns with difficult cancellation processes, unlawful retention tactics, and other barriers that keep consumers from switching or ending subscriptions. It also reports receiving thousands of complaints each year, including more than 100,000 complaints over the past five years, which signals that subscription marketing remains a regulatory priority.
As for timing, the FTC stated that once the ANPRM is published in the Federal Register, the public will have 30 days to submit comments. The agency may then proceed through review, a proposed rule, another round of comments, and potentially a final rule.
In the meantime, businesses should expect the FTC and state regulators to continue using existing authorities, including unfair and deceptive practices statutes, to challenge problematic subscription flows. The best approach is to make key terms conspicuous, obtain and retain clear evidence of affirmative consent, and offer cancellation that is straightforward, reliable, and at least as accessible as enrollment. In many cases, regulatory risk turns less on the fact of a subscription and more on whether the overall experience could be viewed as obscuring costs or limiting consumers’ ability to leave.
