On May 9, 2025, the FTC announced that it is deferring the compliance deadline for the Negative Option Rule by 60 days to July 14.  This announcement came five days before the original compliance date for the majority of the Rule’s provisions.  All three Commissioners voted in favor of the deferral.

The announcement explains that the Commission conducted a fresh assessment of the burdens that forcing compliance by May 14 would impose on regulated entities and determined that the May 14 compliance deadline insufficiently accounted for the complexity of compliance.  The announcement provides a few examples of the requirements imposed by the new Rule, and notes, “as an example, companies will not be able to force consumers to interact with live or virtual customer service representatives—whether in person, on the phone, through instant messaging, or by any other means—unless that is how the consumer signed up in the first place.”

The final paragraph of the announcement highlights that the Commission is open to amending the Rule to address any problems with the Rule that might be exposed in the future. 

The Negative Option Rule is currently under challenge in the 8th Circuit.  On March 17, the FTC filed its brief in defense of the Rule. 

For a summary of the new Rule’s requirements, see our prior blog post and feel free to contact Laura Kim, Terrell McSweeny, Andrew Siegel, or Ali Remick with any questions about the implications of this announcement. 

Tags: FTC, Negative Option Rule
Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Laura Kim Laura Kim

Laura Kim draws upon her experience in senior positions at the Federal Trade Commission to advise clients across industries on complex advertising, privacy, and data security matters. She provides practical compliance advice and represents clients in FTC and State AG investigations. Laura advises…

Laura Kim draws upon her experience in senior positions at the Federal Trade Commission to advise clients across industries on complex advertising, privacy, and data security matters. She provides practical compliance advice and represents clients in FTC and State AG investigations. Laura advises on a wide range of consumer protection issues, including green claims, influencers, native advertising, claim substantiation, Made in USA claims, children’s privacy, subscription auto-renewal marketing, and other digital advertising matters. In addition, Laura actively practices before the NAD, including recent successful resolution of matters for both challengers and advertisers. She is the Chair of Covington’s Advertising and Consumer Protection Investigations Group and participates in the firm’s Internet of Things Initiative.

Laura re-joined Covington after a twelve-year tenure at the FTC, where she served as Assistant Director in two divisions of the Bureau of Consumer Protection, as well as Chief of Staff in the Bureau of Consumer Protection and Attorney Advisor to former Chairman William E. Kovacic. She worked on key FTC Rules and Guides such as the Green Guides, Jewelry Guides, and the Telemarketing Sales Rule. She supervised these and other rule making proceedings and oversaw dozens of the Commission’s investigations and enforcement actions involving compliance with these rules. Laura also supervised compliance monitoring for companies under federal court or Commission order.

Laura also served as Deputy Chief Enforcement Officer at the U.S. Department of Education, where she helped establish a new Enforcement Office within Federal Student Aid. In this role, she managed investigations of higher education institutions and oversaw issuance of fines and adverse actions for institutions in violation of federal student aid regulations. Laura also supervised the borrower defense to repayment division and the Clery campus safety and security division.

Read more about Laura KimEmail
Show more Show less
Photo of Alexandra Remick Alexandra Remick

Alexandra Remick is a member of the Advertising and Consumer Protection Investigations Group. Her practice focuses on regulatory and compliance matters related to consumer protection. She has experience advising clients on topics including endorsements, social media influencers, native advertising, automatically renewing subscriptions, consumer…

Alexandra Remick is a member of the Advertising and Consumer Protection Investigations Group. Her practice focuses on regulatory and compliance matters related to consumer protection. She has experience advising clients on topics including endorsements, social media influencers, native advertising, automatically renewing subscriptions, consumer reviews, and claim substantiation in a variety of contexts. She frequently provides advice on specific advertising compliance questions and works with companies on developing internal advertising compliance policies. She has also represented multiple clients in FTC investigations involving consumer protection issues, has conducted regulatory due diligence on multiple transactions, and has drafted comments on multiple rulemakings.

Read more about Alexandra RemickEmail
Show more Show less