The Federal Trade Commission (FTC) enforces the Prenotification Negative Option Rule. This rule requires companies to give consumers information about their negative option plans, clearly and conspicuously, in any promotional materials that consumers use to enroll. If the sales presentation for a plan is made orally, such as on the phone, the terms and conditions still must be disclosed clearly and conspicuously during the presentation.
For example, companies must tell buyers:
* Whether there’s a minimum purchase obligation;
* How …