The New Cancel Culture: The Federal Trade Commission's "Click to Cancel" Rule

Litigation and consumer protection attorneys Brian Goodrich, Benjamin Genn and Ceijenia Cornelius co-authored an article for The Computer & Internet Lawyer journal analyzing a Federal Trade Commission (FTC) rule altering how subscription- and membership-based businesses will need to operate. Known as the Negative Option Rule, the new regulation addresses issues related to negative option marketing, such as misrepresentations and cancellations. Notably, it expands coverage from only negative option purchases made online to those made in any media, including telephone, face-to-face and printed materials, and imposes a stricter informed consent standard that sellers must meet before charging consumers. In this article, the authors highlight how the changes included in the rule will affect a range of companies, advising organizations to undertake an in-depth review of current policies and practices to prepare for compliance and avoid steep penalties.

The authors also published a Holland & Knight alert on this topic.

READ: The New Cancel Culture: The Federal Trade Commission's "Click to Cancel" Rule