The Federal Trade Commission (FTC) has launched a new initiative to revisit its longstanding Negative Option Rule, a regulation designed to govern the marketing of prenotification plans. On March 11, 2026, the FTC issued an advance notice of proposed rulemaking (ANPRM), inviting consumers and industry stakeholders to provide feedback on potential amendments to the rule. This comes after a recent court decision invalidated updated provisions of the rule in July 2025.

Background on the Negative Option Rule

The Negative Option Rule, first adopted in 1973, was originally aimed at regulating prenotification plans—marketing strategies where a seller periodically sends merchandise to consumers unless they decline in advance. Over the years, the FTC has sought to modernize the rule to address the growing prevalence of online negative option marketing.

In October 2024, the FTC amended the rule to apply more broadly to negative option plans initiated online. The updated rule included specific requirements on misrepresentations, disclosures, consent, and cancellation procedures. However, these changes were short-lived. In July 2025, the U.S. Court of Appeals for the Eighth Circuit vacated the amended rule entirely, citing procedural errors in the rulemaking process.

Following the court’s decision, the FTC has now reopened the rulemaking process through the ANPRM. The agency is seeking input from the public to determine whether and how to revise the rule. The ANPRM outlines several key areas of focus, including the fairness of offering s or incentives—referred to as ‘Saves’—to retain consumers in negative option programs.

Key Provisions Under Review

The ANPRM invites detailed cost-benefit analysis on potential provisions, including how compliance costs may vary across industries, business sizes, and over time. The FTC is particularly interested in the impact of ‘Saves’ on consumer behavior and the competitive landscape of the negative options marketplace.

The ANPRM asks for economic data on how many consumers accept such incentives, the cost savings they provide, and how they affect consumers’ ability to cancel their subscriptions. The agency is also exploring whether a new rule should include exemptions, such as a petition process similar to the one used in the vacated rule, or whether specific market segments should be exempted.

According to the FTC, the agency may draw on elements of the vacated rule in proposing a new regulation. The vacated rule had four key requirements, including specific disclosures, consent mechanisms, and cancellation procedures. The FTC is now seeking detailed input on each of these provisions.

Consumer Complaints and Enforcement Actions

The FTC cited a high volume of consumer complaints as a primary reason for restarting the rulemaking process. The agency has noted that many consumers are struggling to cancel subscriptions or opt out of negative option programs, often due to misleading or unclear terms.

Regardless of the outcome of the current rulemaking, the Restore Online Shoppers’ Confidence Act (ROSCA) remains fully in effect for online negative option offerings. Under ROSCA, the FTC has the authority to take enforcement actions against companies engaging in deceptive or unfair practices.

Since January 2025 alone, the FTC has initiated five new cases and approved six settlements related to alleged negative option misconduct. The agency has also been active in enforcing overlapping requirements under state automatic renewal laws, which vary by jurisdiction.

Businesses that use negative option features online are urged to ensure compliance with ROSCA, Section 5 of the FTC Act, and applicable state laws. Even without an updated rule, the FTC can continue to bring enforcement actions against companies that fail to meet these standards.

The comment period for the ANPRM is now open, and all submissions must be received by April 13, 2026. The FTC is seeking input from a wide range of stakeholders, including consumers, industry representatives, and legal experts.

The outcome of this rulemaking process will have significant implications for the future of online marketing and consumer protection in the U.S. The agency’s decision on whether to amend the Negative Option Rule will shape how companies operate in this space and how consumers are protected from potentially deceptive practices.

The FTC has emphasized the importance of public input in shaping the final rule. Consumers and businesses alike are encouraged to participate in the comment process to ensure that the final rule reflects a balanced approach to consumer protection and business flexibility.