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FTC

The FTC issued amendments to the ‘‘Rule Concerning Use of Prenotification Negative Option Plans,’’ retitled the ‘‘Rule Concerning Recurring Subscriptions and Other Negative Option Programs.’’ The final Rule would have applied to all negative option programs in any media. On July 9, 2025, the Eighth Circuit vacated all of the 2025 amendments, both the provisions that were already in effect and the remaining provisions that were to go into effect on July 14, 2025. See Custom Commc'ns, Inc. v. Fed. Trade Comm'n, 2025 WL 1873489, at *9 (8th Cir.

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In settlement of alleged violations of federal law prohibiting unfair or deceptive acts or practices and unfair methods of competition, this consent order requires, among other things, the Georgia company and its officer to offer customers the chance to cancel the credit-life, credit-disability, or accidental death and dismemberment insurance they purchased, and to obtain cash refunds or credit which could amount to as much as $1.2 million.

In settlement of alleged violations of federal law prohibiting unfair or deceptive acts or practices and unfair methods of competition, this consent agreement, accepted subject to final commission approval, would require, among other things, the Georgia-based money lender and its president to send a notice to all of its current customers offering them the opportunity to cancel the credit-life, credit-disability, and accidental death and disbursement insurance coverages written on their loans, and to receive cash refunds or credits.

The information collection requirements described in the notice will be submitted to the Office of Management and Budget for review, as required by the Paperwork Reduction Act. The FTC is seeking public comments on its proposal to extend for an additional three years the current PRA clearance for information collection requirements in its Telemarketing Sales Rule.