FTC Delays Subscription Rule Enforcement for Second Time
The FTC will delay enforcement of some recent changes to its Negative Option Rule until July 14 to allow regulated entities additional time to comply, the agency said in a statement Friday.
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Stakeholders raised privacy-related concerns in 2024 when then-FTC Chair Lina Khan opened the proceeding for public comment. Comments are summarized in the agency’s final rule notice in the Federal Register. Under the Negative Option Rule, the FTC regulates industry practices related to automatic subscription renewals.
The agency in its final rule said companies could be held liable for misrepresentations they make in their privacy policies. In comments, the U.S. Chamber of Commerce and others sought clarity on privacy liability. It depends on “whether the seller misrepresents its privacy policy in a way likely to affect consumer choice or conduct,” the agency said of changes to the rule.
The agency amended its proposal after industry groups said potential recordkeeping requirements could conflict with data deletion practices. The agency said it amended the recordkeeping requirements to balance rule enforcement with “privacy and burden concerns.”
The rule took effect Jan. 19, but the commission deferred enforcement on some provisions until May 14. The commission in its Friday statement said it’s again delaying enforcement on certain provisions due to compliance complexities.
“Starting July 14, 2025, regulated entities must be in compliance with the whole of the Rule because the Commission will begin enforcing it,” the agency said. “Of course, if that enforcement experience exposes problems with the Rule, the Commission is open to amending the Rule to address any such problems.”