Companies that automatically renew customers’ subscriptions or memberships, take note. On October 16, 2024, the Federal Trade Commission (FTC) announced sweeping amendments to the Negative Option Rule, which would apply to a host of subscription-based products and services that have an auto-renewal feature (i.e., a negative option offering), including those directed to businesses. The Rule includes specific and prescriptive requirements, such as requirements to 1) obtain consumers’ affirmative consent to an auto renewal feature “separate from any other portion of the transaction,” 2) present all material terms of the transaction “immediately adjacent to” the means of recording consumer consent, and 3) allow for simple cancellation in the same medium the consumer used to consent, noting that a chatbot cancellation method would not be acceptable unless the initial transaction was made through a chatbot. Violations of the Rule would be subject to $51,744 in civil penalties per violation.Continue Reading Subscription and Auto-Renew Offerings Face New Hurdles: FTC Issues Broad “Click-to-Cancel” Rule Imposing Nationwide Requirements