The Federal Trade Commission is accepting public comments on a potential overhaul of its Negative Option Rule until April 13, 2026. If your business uses subscriptions, auto-renewals, free trials that convert to paid plans, or any other model where customers are charged unless they cancel, this directly affects you.
The FTC published an Advance Notice of Proposed Rulemaking (ANPRM) in the Federal Register on March 13, 2026. An ANPRM is the earliest stage of the federal rulemaking process. It does not change any rules today, but it shapes what could come next.
The FTC is asking whether it should update the original Negative Option Rule, which has been on the books since 1973 and only covers a narrow category of “prenotification plans” like old-fashioned book-of-the-month clubs. The agency wants to know whether it should expand the rule to cover modern subscription models across all industries and marketing channels.
This ANPRM follows the Eighth Circuit Court of Appeals’ decision in July 2025, which struck down the FTC’s 2024 “Click-to-Cancel” rule on procedural grounds. That rule would have required clear disclosures, separate consent for the recurring charge, and a simple cancellation process. Those requirements could still come back in a revised rule.
The SBA Office of Advocacy noted that the FTC is specifically asking which small businesses and industries use negative option marketing and whether the agency should tailor requirements to reduce costs for smaller firms. The FTC also wants market studies, economic data, and real-world cost estimates from businesses of all sizes.
Even without a new rule, the FTC can still bring enforcement actions under existing laws like the Restore Online Shoppers’ Confidence Act (ROSCA) and Section 5 of the FTC Act. Since January 2025, the agency has started 5 new cases and approved 6 settlements over negative option practices.
Business owners who want to weigh in can submit comments electronically at regulations.gov or by mail to the FTC by April 13, 2026. After reviewing comments, the Commission will decide whether to move forward with a formal proposed rule, take no action, or explore alternatives like education-based programs instead of regulation.
