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FTC's New ANPRM on Negative Option Plans: What Business Brokers Need to Know

Update The Significance of the FTC's ANPRM Submission On January 30, 2026, the Federal Trade Commission (FTC) took a significant step by submitting a draft Advance Notice of Proposed Rulemaking (ANPRM) related to the Pnegotative Option Rule to the Office of Information and Regulatory Affairs (OIRA). This submission highlights the agency's commitment to strengthening consumer protection in the realm of automatic renewals and subscriptions. The ANPRM aims to modernize regulations governing prenotification negative option plans—often criticized for their lack of transparency. What Are Negative Option Plans? Negative option plans typically involve businesses providing services or products to consumers on an automatic renewal basis unless the consumer actively opts out. The FTC has observed a surge in complaints regarding these plans, prompting the need for clearer regulations. The draft ANPRM sets the stage for potential updates that could include stricter requirements for transparency and consumer consent, addressing widespread concerns among consumers about unauthorized charges. The Broader Regulatory Landscape The submission of the ANPRM is particularly noteworthy as it aligns with state-level efforts, where various jurisdictions are enacting stricter laws related to subscription services. For example, states like California have already implemented stringent regulations, which may compel businesses to improve compliance frameworks significantly. As both state and federal regulators intensify their scrutiny of subscription models, businesses must prepare for a more robust regulatory environment. Companies operating in this space should review their practices and ensure they adhere to evolving legal standards. Expectations for Consumer Feedback Once the OIRA completes its review, the FTC will publish the ANPRM in the Federal Register, providing details on how consumers can submit their comments. This stage is critical as the FTC encourages public input to shape the final regulations. Businesses should pay close attention to the upcoming announcement to gauge public sentiment and potential shifts in regulatory focus. Future Implications for Business Brokers For business brokers, understanding the intricacies of the Negative Option Rule and its potential revisions is vital. As compliance becomes a focal point, brokers can leverage their expertise to guide clients through the changing landscape. This could involve advising on best practices for consumer disclosures, ensuring clear opt-in mechanisms, and preparing for potential penalties related to non-compliance. The evolving nature of the subscription economy necessitates that brokers remain vigilant and informed, equipping their clients with the tools to navigate potential regulatory challenges.