The Federal Trade Commission (FTC) is once again taking aim at its Negative Option Rule, signaling a renewed effort to address deceptive subscription and automatic renewal practices.
On March 11, 2026, the FTC released an Advance Notice of Proposed Rulemaking (ANPRM) seeking input on whether the rule should be updated to reflect today’s subscription‑driven marketplace. The agency emphasized that negative option programs continue to generate substantial consumer frustration, including more than 100,000 complaints over the past five years.
Negative option arrangements allow sellers to charge consumers automatically and the absence of any affirmative consumer action is seen as consent to be charged for the products and services (i.e., the lack of a consumer action is seen as consent to an automatic renewal of a subscription). This is a model widely used in subscription services, streaming platforms, and free‑to‑paid trials. While these programs can offer convenience and certain benefits, the FTC notes that they also create areas for abuse when businesses employ inadequate disclosures, obtain payment without proper consent, or design cancellation processes that are confusing, obstructive, or difficult.
This renewed regulatory push comes after the Eighth Circuit vacated the FTC’s 2024 “Click‑to‑Cancel” Rule last year, citing procedural flaws in the agency’s preliminary regulatory analysis. The vacated rule would have expanded the Negative Option Rule to cover nearly all subscription and recurring billing programs. Since last year, the FTC has continued to rely on other authorities to regulate such practices, including the Restore Online Shoppers’ Confidence Act, Section 5 of the FTC Act, and the Telemarketing Sales Rule. The FTC now seeks input on whether a revised rule should revive elements of the vacated rule and how it might better address the modern subscriptions.
The ANPRM poses a wide range of questions, including how widespread negative option programs have become, how companies disclose key terms to their customers, whether customers provide express informed consent, and what barriers exist in the cancellation process. The FTC also seeks perspectives on alternative regulatory approaches, including educating consumers or updated enforcement guidelines.
With the ANPRM now published, the FTC has officially opened a public comment period running through April 13, 2026. For businesses, this represents an important opportunity to help shape future regulatory obligations. As the FTC re‑evaluates the Negative Option Rule, the outcome of this public comment period will play an important role in shaping the future of subscription and auto‑renewal practices across the marketplace.
As we briefly discussed in our Closing Out 2025: Key Privacy & Data Security Updates post, in addition to federal activity, many states have enacted or strengthened their own automatic renewal and negative option laws. More than 30 states now maintain their own automatic renewal statutes, each imposing varying requirements for disclosures, affirmative consent, renewal notices, and cancellation mechanisms.
Businesses should regularly review their consumer disclosures and their subscription sign‑up and cancellation processes to ensure they comply with applicable state automatic‑renewal laws and to avoid the use of any dark patterns. Clear, accurate, and easily accessible information about renewal terms, free trials, pricing, and cancellation rights helps reduce legal risk and supports transparent, consumer‑friendly practices.
