Today’s podcast features James Kohm, the Associate Director for the Enforcement Division of the Federal Trade Commission’s Bureau of Consumer Protection. We discuss the FTC’s “Click-to-Cancel” Rule (consisting of significant amendments to the longstanding “Negative Option Rule”) which was promulgated by the FTC on October 16, 2024 by a vote of 3-2 along party lines.… Continue Reading
negative option
FloatMe Settlement with FTC Contains Exacting Requirements
By Mindy Harris, John L. Culhane, Jr., John A. Kimble & Ballard CFS Group on
On January 22, 2024, the Federal Trade Commission (FTC) entered into a Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief (the “Order”) with FloatMe Corp. (“FloatMe”), a fintech that offers short-term cash advances through its mobile app, to settle litigation brought earlier in the month against the fintech and two of its principals (collectively, “Defendants”).… Continue Reading
FTC issues Fall 2023 rulemaking agenda
By Alan S. Kaplinsky on
Posted in FTC, Regulatory and Enforcement
The Federal Trade Commission has released its Fall 2023 rulemaking agenda as part of the Fall 2023 Unified Agenda of Federal Regulatory and Deregulatory Actions.
The majority of the rulemakings listed in the agenda are being conducted as part of the FTC’s systematic review of all of its regulations and guidelines on a rotating basis. … Continue Reading
FTC announces settlement with operator of personal finance mobile app alleged to have used “dark patterns” in connection with negative option
By John L. Culhane, Jr. & Ballard CFS Group on
The Federal Trade Commission recently announced that it has entered into a settlement with Bridge It, Inc. (“Brigit”), the operator of a personal finance mobile application, to resolve the FTC’s allegations that Brigit engaged in unfair and deceptive acts or practices in violation of Section 5 of the FTC Act and engaged in conduct that violated the Restore Online Shoppers’ Confidence Act (“ROSCA”). … Continue Reading
FTC proposes “click to cancel” provision in proposed amendments to Negative Option Rule
By John C. Grugan & Brian Turetsky on
Posted in FTC, Regulatory and Enforcement
On March 23, 2023, the Federal Trade Commission (“FTC” or “Commission”) issued a Notice of Proposed Rule Making (“NPRM”) seeking comment on proposed amendments to the Commission’s Negative Option Rule. The proposed amendments, which would expand the scope of the rule’s coverage to all forms of negative option marketing and consolidate various requirements dispersed across various statutes and regulations, include a “click to cancel” provision which would require a simple cancellation mechanism for consumers to easily cancel subscriptions by using the same method they used to initially enroll.… Continue Reading
CFPB issues circular on negative option marketing
By John L. Culhane, Jr. & Ballard CFS Group on
The CFPB has issued a new circular (2023-01) that addresses the circumstances under which “negative option marketing practices” can violate the CFPA prohibition of unfair, deceptive, or abusive acts or practices.
The circular uses the term “negative option” to refer to “a term or condition under which a seller may interpret a consumer’s silence, failure to take an affirmative action to reject a product or service, or failure to cancel an agreement as acceptance or continued acceptance of the offer.” … Continue Reading