Rule Concerning Recurring Subscriptions and Other Negative Option Programs ("Negative Option Rule")

Forms and Documents

Document Name	Status
Negative Option Final Rule Supplemental Supporting Statement-2024-FINAL.pdf Supporting Statement A	2024-11-13

IC Document Collections

IC ID	Document Title	Status
32301	Disclosure Requirements for Existing Clubs	Unchanged
272332	Disclosure - 2024 Final Rule	New
272331	Recordkeeping - 2024 Final Rule	New

ICR Details

OMB Control No: 3084-0104	ICR Reference No: 202411-3084-002
Status: Received in OIRA	Previous ICR Reference No: 202307-3084-005
Agency/Subagency: FTC	Agency Tracking No:
Title: Rule Concerning Recurring Subscriptions and Other Negative Option Programs ("Negative Option Rule")
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 11/15/2024

	Requested	Previously Approved
Expiration Date	36 Months From Approved	02/28/2027
Responses	159,025	25
Time Burden (Hours)	267,500	2,500
Cost Burden (Dollars)	0	0

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Abstract: The Federal Trade Commission (“FTC” or “Commission”) is issuing final amendments to the Commission’s “Rule Concerning Use of Prenotification Negative Option Plans,” retitled the “Rule Concerning Recurring Subscriptions and Other Negative Option Programs” (“Rule,” “final Rule” or “Negative Option Rule”). The final Rule now applies to all negative option programs in any media, and, among other things, (1) prohibits misrepresentations of any material fact made in connection with marketing goods or services with a negative option feature; (2) requires sellers to provide important information prior to obtaining consumers’ billing information and charging consumers; (3) requires sellers to obtain consumers’ unambiguously affirmative consent to the negative option feature prior to charging them; and (4) requires sellers to provide consumers with simple cancellation mechanisms to immediately halt all recurring charges. The final Rule makes changes in the Rule’s recordkeeping and disclosure requirements that will increase the PRA burden as detailed below. Accordingly, the Commission is submitting the final Rule and a Supplemental Supporting Statement to the Office of Management and Budget for review under the PRA.

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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	Final or interim final rulemaking	89 FR 90476	11/15/2024

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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: 3

IC Title	Form No.	Form Name
Disclosure - 2024 Final Rule
Disclosure Requirements for Existing Clubs
Recordkeeping - 2024 Final Rule

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	159,025	25	0	159,000	0	0
Annual Time Burden (Hours)	267,500	2,500	0	265,000	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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 amendments to the Rule will result in an estimated additional 265,000 annual hours of burden and $6,541,260 in associated annual labor costs.

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Annual Cost to Federal Government: $100,000

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: 11/15/2024

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