The U.S. Chamber of Commerce has expressed concerns over the Federal Trade Commission’s (FTC) new Negative Option Rule, which aims to simplify the cancellation process for subscriptions. The rule, announced by the FTC, requires businesses to make it as easy for consumers to cancel subscriptions as it is to sign up, addressing common complaints about difficult cancellation procedures.
Neil Bradley, Executive Vice President of the U.S. Chamber, criticized the rule as an overreach, warning it could lead to fewer subscription options and higher costs for consumers.
“The FTC’s expansive subscription rule is the latest power grab by the Commission in its pursuit to micromanage business decision. Not only will this rule deter businesses from providing sensible, consumer-friendly subscriptions, but it will leave Americans with fewer options, higher prices, and more headaches.”
Despite these concerns, FTC Chair Lina M. Khan emphasized that the rule would protect consumers from deceptive practices, ultimately saving them time and money. The rule will take effect 180 days after its publication in the Federal Register.
With a sharp increase in consumer complaints about negative option practices, the FTC is modernizing its 1973 rule to create a clearer legal framework for subscription-based services. While some business groups remain critical, the FTC believes the changes are necessary to protect consumers in the digital age.
WY We Care: Your Wyoming Chamber of Commerce is concerned about the FTC’s new Negative Option Rule because it impacts both businesses and consumers alike. For Wyomingites, especially small business owners, this rule could feel like unnecessary red tape, making it harder to offer flexible, consumer-friendly subscription services. On the flip side, it benefits consumers by making it easier to cancel unwanted services, protecting them from deceptive practices. Balancing these effects is crucial for Wyoming’s economy, as both local businesses and customers need flexibility and fairness in the marketplace.
