Regulations last checked for updates: Feb 22, 2025

Title 16 - Commercial Practices last revised: Feb 14, 2025
§ 425.3 - Misrepresentations.

In connection with promoting or offering for sale any good or service with a Negative Option Feature, it is a violation of this part and an unfair or deceptive act or practice in violation of section 5 of the Federal Trade Commission Act (“FTC Act”) for any Negative Option Seller to misrepresent, expressly or by implication, any Material fact, including any of the following:

(a) The Negative Option Feature or any term of the Negative Option Feature, including consumer consent, any deadline to prevent or stop a Charge, or the cancellation of the Negative Option Feature;

(b) Cost;

(c) Purpose or efficacy of the underlying good or service;

(d) Health or safety; or

(e) Any other Material fact.

authority: 15 U.S.C. 41 through 58
source: 89 FR 90537, Nov. 15, 2024, unless otherwise noted.
cite as: 16 CFR 425.3