FTC Submits Draft Rulemaking on Negative Option Plans to OIRA for Review

USA: FTC Submits Draft Rulemaking on Negative Option Plans to OIRA

A draft Advance Notice of Proposed Rulemaking (ANPRM) concerning the Federal Trade Commission’s Negative Option Rule has been submitted to the Office of Information and Regulatory Affairs (OIRA) for review. The submission fulfills requirements under Executive Orders 12866 and 14215, which mandate that significant regulatory actions undergo OIRA scrutiny before publication.

Regulatory Review Process

OIRA classified the ANPRM as a “significant regulatory action,” triggering a formal review to assess its economic and policy implications. The agency’s assessment will determine whether the rulemaking proceeds to the Federal Register, where it will be open for public comment.

Commission Vote and Legal Representation

The FTC Commission approved the submission with a unanimous 2-0 vote. Hong Park, the lead attorney in the Bureau of Consumer Protection, is identified as the point of contact for the matter.

Next Steps and Public Participation

Following OIRA’s review, the FTC plans to publish the ANPRM in the Federal Register and issue instructions for consumers and stakeholders to submit comments. The comment period will provide an opportunity for affected parties to influence the final rule.

Potential Impact on Consumers

The Negative Option Rule governs the use of prenotification negative option plans, which can enroll consumers in recurring services unless they actively opt out. The FTC’s proposed changes aim to clarify disclosure requirements and strengthen consumer protections, though the final impact will depend on the rule’s ultimate language.

Agency Background

The Federal Trade Commission’s Bureau of Consumer Protection oversees advertising, marketing, and payment practices, seeking to promote competition and safeguard consumer rights. The agency regularly issues rulemakings to address emerging market practices.

This report is based on information from FTC, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.