The Federal Trade Commission (FTC) recently announced a notice of proposed rulemaking to expand its “Negative Option Rule” to apply to all recurring subscription programs (Proposed Amendment). The Proposed Amendment would have a sweeping effect on recurring subscriptions, requiring—similarly to some state laws—clear and conspicuous disclosure of material terms, double opt-ins for sign-ups, a simple cancellation method, and an annual renewal reminder. If approved, the Proposed Amendment would set a nationwide floor by requiring specific practices for subscriptions, but it would not supplant existing state laws addressing recurring subscriptions. The amendment would also greatly expand the FTC’s ability to seek penalties and consumer redress for violations.
Kim Ng centers her practice on internet and technology issues, with a strong focus on data privacy and information security. She counsels clients on compliance efforts with state, federal, and international privacy laws and regulations, including the California Consumer Privacy Act (CCPA), Communications Decency Act (CDA), and the General Data Protection Regulation (GDPR).