On March 11, 2026, the Federal Trade Commission (FTC) issued an advance notice of proposed rulemaking (ANPRM) on negative option marketing. The ANPRM restarts the agency’s effort to regulate subscriptions and automatic renewals after the Eighth Circuit vacated the prior “Click to Cancel” rule, from the Biden administration era, on procedural grounds. Comments are due 30 days after Federal Register publication.

The ANPRM does not include draft regulatory text. Instead, the FTC poses broad questions to shape a future rule, including whether a new rule is even necessary or whether existing tools — such as consumer education, business guidance, and enforcement under current statutes — are sufficient. The agency also asks whether it should modernize the existing, narrow Pre-Notification Negative Option Rule or adopt an entirely new, more comprehensive rule that reflects today’s subscription and automatic renewal models.

Substantively, the FTC signals that key requirements from the vacated Click to Cancel rule are likely to remain central:

  • Clear and conspicuous disclosure of material terms;
  • Affirmative express consent to the negative option feature;
  • A simple and easy-to-use cancellation mechanism; and
  • Prohibitions on misrepresentations in promoting negative option plans.

To address the purported procedural shortcomings identified by the Eighth Circuit, the ANPRM requests extensive industry and economic data to demonstrate the “prevalence” of unfair or deceptive practices and to quantify the costs and benefits of various regulatory approaches. It also zeroes in on cancellation flows and “Save-A-Sale” practices, seeking detailed information on enrollment and cancellation times and rates, the performance of retention offers, and how these practices interact with state automatic renewal laws.

Why It Matters

The FTC — under the Trump administration — has continued to pursue enforcement under its existing authority and through the new ANPRM, emphasizing that negative option practices are a bipartisan concern. At the same time, states are steadily enacting and revising automatic renewal laws, creating a fragmented and evolving compliance landscape. Companies offering subscriptions, memberships, or other negative option plans should align their practices with FTC guidance and the most stringent applicable state laws to minimize regulatory and enforcement risk.

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Photo of Clayton Friedman Clayton Friedman

Clayton is a partner in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group and co-leader of the State Attorneys General practice, multidisciplinary teams with decades of experience crafting effective strategies to help deter or mitigate the risk of enforcement actions and…

Clayton is a partner in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group and co-leader of the State Attorneys General practice, multidisciplinary teams with decades of experience crafting effective strategies to help deter or mitigate the risk of enforcement actions and litigation.

Photo of Michael Yaghi Michael Yaghi

Michael is a partner in the firm’s State Attorneys General and Regulatory Investigations, Strategy + Enforcement (RISE) Practice Groups, nationwide teams that advise clients on consumer protection enforcement matters and other regulatory issues. Based in the firm’s Orange County office, Michael represents high-profile…

Michael is a partner in the firm’s State Attorneys General and Regulatory Investigations, Strategy + Enforcement (RISE) Practice Groups, nationwide teams that advise clients on consumer protection enforcement matters and other regulatory issues. Based in the firm’s Orange County office, Michael represents high-profile clients in regulatory enforcement investigations involving all facets of their business, including but not limited to, advertising and sales practices, monthly membership programs, auto renewal programs, telemarketing and telephone solicitations, door-to-door sales practices, and endorsements. Having begun his career as a commercial litigator, he also supports clients throughout litigation, should an investigation move in that direction.

Photo of Zoe Schloss Zoe Schloss

Zoe represents clients in litigation and government investigations. As former deputy attorney general for the Delaware Department of Justice, she is an experienced litigator who understands the enforcement priorities that impact her clients. Zoe works with individuals and corporate entities in highly regulated…

Zoe represents clients in litigation and government investigations. As former deputy attorney general for the Delaware Department of Justice, she is an experienced litigator who understands the enforcement priorities that impact her clients. Zoe works with individuals and corporate entities in highly regulated industries, including financial services, health care, and energy.

Photo of Namrata Kang Namrata Kang

Namrata (Nam) is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, based in the Washington, D.C. office. She routinely advises clients on a wide variety of state and federal regulatory matters, with a particular emphasis on state consumer…

Namrata (Nam) is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, based in the Washington, D.C. office. She routinely advises clients on a wide variety of state and federal regulatory matters, with a particular emphasis on state consumer protection laws relating to consumer financial services and marketing and advertising. Nam’s experience transcends multiple industries, including financial services, telecommunications, media, and sports betting.