image credit: Unsplash

FTC Releases Guidance on Negative Option Marketing

The Federal Trade Commission released a new enforcement policy statement on October 28, 2021, targeting the practice known as “Negative Option Marketing.” Negative Option Marketing is the practice of taking consumers’ silence as tacit consent in various circumstances, including automatic subscription renewals and free-trial marketing. In the statement, the FTC outlined four general requirements for companies soliciting consumer consent:

  1. Sellers must give “clear and conspicuous disclosure” of the terms of the policy or offer, key terms such as the company’s intent to use silence as consent, the offer’s total cost, and how to cancel or withdraw consent.
  2. Sellers must disclose these terms before soliciting consumer consent.

Read More on National Law Review