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
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Photo of Laura Kim Laura Kim

Laura Kim has a proven track record of successfully resolving clients’ most important consumer protection matters before the FTC, State AGs, and the NAD. She is well-known for her insider knowledge of the FTC as well as her practical approach to accomplishing her…

Laura Kim has a proven track record of successfully resolving clients’ most important consumer protection matters before the FTC, State AGs, and the NAD. She is well-known for her insider knowledge of the FTC as well as her practical approach to accomplishing her clients’ objectives.

As chair of Covington’s Advertising & Consumer Protection Investigations practice group, Laura represents corporate and individual clients in investigations before the FTC and State Attorneys General. She also provides pragmatic compliance advice on a wide range of consumer protection issues, including substantiating claims involving generative artificial intelligence, environmental benefits, and “Made in USA.” She counsels brands on emerging issues involving influencers, consumer reviews, AI-generated content, and subscription autorenewals. Laura regularly represents both challengers and advertisers before the NAD, achieving favorable outcomes in matters involving artificial intelligence, influencers, and claim substantiation.

During her twelve-year tenure at the FTC, Laura served as Assistant Director in two divisions of the Bureau of Consumer Protection, Attorney Advisor to Chairman William E. Kovacic, and Chief of Staff to Bureau Director Jessica Rich. She oversaw major rulemakings—including the Green Guides and the Telemarketing Sales Rule—and supervised dozens of investigations and enforcement actions. As Assistant Director in the Division of Enforcement, Laura also supervised compliance monitoring and enforcement proceedings for companies under federal court or Commission order.

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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.

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