The Federal Trade Commission (FTC) is poised to re-start a rulemaking process regarding disclosures and requirements for subscription and auto-renewing products and services.  On January 30, 2026, the FTC submitted a draft Advance Notice of Proposed Rulemaking (ANPRM) on the Rule Concerning the Use of Prenotification Negative Option Plans (the Rule), commonly known as the Negative Option Rule, to the Office of Information and Regulatory Affairs (OIRA) for review. 

The content of the ANPRM – and potential revisions to the Negative Option Rule – will not be available until OIRA completes its review and the FTC publishes the ANPRM in the Federal Register for comment.  The ANPRM may be cleared for publication as soon as mid-February.  

An earlier version of the rule – also referred to as the “Click-to-Cancel” Rule  – was struck down in July 2025 due to procedural defects when the Eighth Circuit found the FTC failed to adequately perform the preliminary regulatory analysis for trade regulation rules having an impact of $100 million or more. 

The FTC’s move to revisit the Negative Option Rule, rather than abandon it, is consistent with its recent enforcement focused on subscription and auto-renewal requirements.  We are continuing to monitor the ANPRM and opportunities to comment on the Rule.

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Photo of Terrell McSweeny Terrell McSweeny

Terrell McSweeny, former Commissioner of the Federal Trade Commission (FTC), has held senior appointments in the White House, Department of Justice (DOJ), and the U.S. Senate. At the FTC and DOJ Antitrust Division, she played key roles on significant antitrust and consumer protection…

Terrell McSweeny, former Commissioner of the Federal Trade Commission (FTC), has held senior appointments in the White House, Department of Justice (DOJ), and the U.S. Senate. At the FTC and DOJ Antitrust Division, she played key roles on significant antitrust and consumer protection enforcement matters. She brings to bear deep experience with regulations governing mergers and non-criminal, anti-competitive conduct, as well as issues relating to cybersecurity and privacy facing high-tech, financial, health care, pharmaceutical, automotive, media, and other industries. Terrell is internationally recognized for her work at the intersection of law and policy with cutting edge technologies including Artificial intelligence (“AI”), Digital Health, Fintech, and the Internet of Things (“IoT”). Clients benefit considerably from her extensive relationships with other enforcement agencies around the world.

Prior to joining the Commission, Terrell served as Chief Counsel for Competition Policy and Intergovernmental Relations for the U.S. Department of Justice, Antitrust Division. She joined the Antitrust Division after serving as Deputy Assistant to the President and Domestic Policy Advisor to the Vice President from January 2009 until February 2012, advising President Obama and Vice President Biden on policy in a variety of areas.

Terrell’s government service also includes her work as Senator Joe Biden’s Deputy Chief of Staff and Policy Director in the U.S. Senate, where she managed domestic and economic policy development and legislative initiatives, and as Counsel on the Senate Judiciary Committee, where she worked on issues such as criminal justice, innovation, women’s rights, domestic violence, judicial nominations, immigration, and civil rights.

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.

Photo of Carter McCants Carter McCants

Carter McCants specializes in advising clients on complex consumer protection matters.

Carter focuses her practice on the rapidly evolving field of consumer protection law and counsels clients across a broad array of industries, including media and technology, consumer products, live events, hotel and…

Carter McCants specializes in advising clients on complex consumer protection matters.

Carter focuses her practice on the rapidly evolving field of consumer protection law and counsels clients across a broad array of industries, including media and technology, consumer products, live events, hotel and lodging, and financial services. She regularly helps clients navigate critical legislative, regulatory, and compliance issues on topics such as advertising, claim substantiation, all-in pricing, consumer reporting, and automatic subscription renewals. Carter also represents clients in enforcement investigations before the Federal Trade Commission, Consumer Financial Protection Bureau, and State Attorneys General.