Marketers Downplay Consumer Harm Caused by Negative Option Offers
Marketers are attempting to put a positive spin on the negative option.
Negative Option Offer Comment
In December 2019, TINA.org submitted a comment to the FTC, which was seeking public comment on ways to improve its existing regulations for negative option marketing, including whether the agency should use its rulemaking authority under the FTC Act to expand the scope and coverage of the existing Negation Option Rule.
In its comment, TINA.org urged the FTC to provide further consumer protection in this area and summarized relevant statistics concerning the scope of the problem (e.g., the growth of consumer complaints regarding free trials). TINA.org also explained how, in its current form, the FTC’s Negative Option Rule leaves consumers vulnerable to deception and that updating the Rule would be minimally burdensome to companies, essentially requiring them to be straightforward with its customers.
Click here read TINA.org’s full comment.
Featured
The Latest
Savage X Fenty’s Deceptive Negative Option Offer
FTC Opts for Wait-and-See Approach on Negative Option
Before making any changes to its own rule, the agency will look to see how a 2010 statute plays out.
Regenepure
Watch out for this product’s negative-option offer that comes with any initial purchase.
Stripping Down Savage X Fenty’s Deceptive Marketing
Acting on TINA.org’s complaint, California regulators reach $1.2 million settlement with company.
FabKids’ Back-to-School Ads Mislead Parents
Online retailer deceptively advertises members-only prices, TINA.org investigation finds.
What’s Missing, Adore Me?
How Adore Me Deceives You
TINA.org files complaint with state and federal regulators.
California Is Latest to Strip Down Adore Me’s Deceptive Marketing
Online retailer agrees to pay a minimum of $200,000 in restitution to settle California action.
Adore Me’s Deceptive Marketing Practices Laid Bare
Lingerie company agrees to pay more than $1.3 million in refunds to consumers.
Class-Action Tracker
Ancestry.com
Allegations: Misleadingly offering free trials of subscriptions
Subscriptions to Consumer Reports
Allegations: Failing to adequately disclose the terms of automatic renewal and continuous service subscriptions
Subscriptions to The New York Times
Allegations: Failing to adequately disclose that consumers are enrolled in a program that automatically renews their subscriptions
Proactiv Auto-Renewal Subscription
May 2017: A judge granted final approval of the settlement. February 2017: A judge preliminarily approved a settlement of a false advertising class-action lawsuit filed against Guthy-Renker (the company that…