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Tech & Sourcing @ Morgan Lewis

TECHNOLOGY TRANSACTIONS, OUTSOURCING, AND COMMERCIAL CONTRACTS NEWS FOR LAWYERS AND SOURCING PROFESSIONALS

The US Federal Trade Commission (FTC) recently proposed expanding its Negative Option Rule to all subscription agreements. Businesses offering subscription services would be required to make it at least as easy for consumers to cancel a subscription service as it is to sign up for it. For example, if a consumer can sign up for a service online, then the consumer must also be able to cancel it online in the same number of steps (and not be required to cancel in person).

In addition, the proposed rule would require businesses to seek the consumer’s consent before pitching additional offers or modifications when a consumer tries to cancel their enrollment.

For more on the FTC's proposal, read the full LawFlash.