Use of Prenotification Negative Option Plans ("Negative Option Rule")

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
Negative Option NPRM Supporting Statement-2023-FINAL.pdf	Supporting Statement A	Uploaded 2023-04-19	Repair queued

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
32301	Disclosure Requirements for Existing Clubs		Unchanged
259780	Disclosure Requirements - NPRM		New
259779	Recordkeeping Requirements - NPRM		New
186715	Disclosure Requirements for New Clubs		Unchanged

ICR Details

OMB Control No: 3084-0104	ICR Reference No: 202304-3084-002
Status: Historical Inactive	Previous ICR Reference No: 202011-3084-002
Agency/Subagency: FTC	Agency Tracking No:
Title: Use of Prenotification Negative Option Plans ("Negative Option Rule")
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Comment filed on proposed rule and continue	Conclusion Date: 07/19/2023
Retrieve Notice of Action (NOA)	Date Received in OIRA: 04/24/2023
Terms of Clearance: OMB files this comment in accordance with 5 CFR 1320.11(c). This OMB action is not an approval to conduct or sponsor an information collection under the Paperwork Reduction Act of 1995. This action has no effect on any current approvals. If OMB has assigned this ICR a new OMB Control Number, the OMB Control Number will not appear in the active inventory. For future submissions of this information collection, reference the OMB Control Number provided. Resubmit when proposed rule is finalized.

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	01/31/2024	36 Months From Approved	02/29/2024
Responses	95	0	95
Time Burden (Hours)	9,750	0	9,750
Cost Burden (Dollars)	0	0	0

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Abstract: The Federal Trade Commission proposes amendments to the Rule on the Use of Prenotification Negative Option Plans (“Negative Option Rule” or “Rule”), 16 CFR pt. 425, to combat unfair or deceptive practices that include recurring charges for products or services consumers do not want and cannot cancel without undue difficulty.

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Authorizing Statute(s): US Code: 15 USC 41-58 Name of Law: Federal Trade Commission Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3084-AB60	Proposed rulemaking	88 FR 24716	04/24/2023

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 4

table that charts list of burden

IC Title	Form No.	Form Name
Disclosure Requirements - NPRM
Disclosure Requirements for Existing Clubs
Disclosure Requirements for New Clubs
Recordkeeping Requirements - NPRM

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Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The proposed amendments to the Rule will result in an estimated additional 265,000 annual hours of burden and $5,689,550 in associated annual labor costs.

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Annual Cost to Federal Government: $88,000

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 04/24/2023

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