16 CFR 425.1 - The rule

Cite as16 CFR 425.1
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58 practice notes
  • Part V
    • United States
    • Federal Register March 30, 2007
    • March 30, 2007
    ...rules where the Commission has recognized that information about legal risks to consumers is material. E.g., Negative Option Rule, 16 CFR 425.1(a)(ii) (minimum purchase obligations); Door-to-Door Sales Rule, 16 CFR 429.1 (obligations regarding \467\ The UFOC Guidelines clearly contemplate t......
  • Introduction to the Unified Agenda of Federal Regulatory and Deregulatory Actions
    • United States
    • Federal Register December 22, 2014
    • December 22, 2014
    ...in the Constitution Center. The effective date of the new address was May 6, 2014. 79 FR 25662. Prenotification Negative Option Rule, 16 CFR 425. On July 25, 2014, the Commission announced it was closing the periodic Regulatory Review and retaining the Negative Option Rule (the Trade Regula......
  • Telemarketing sales rule,
    • United States
    • Federal Register January 29, 2003
    • January 29, 2003
    ...the customer tells the company not to send it. See the Commission's Rule governing ``Use of Negative Option Plans by Sellers in Commerce,'' 16 CFR 425. \154\ A ``continuity plan'' consists of a subscription to a collection or series of goods. Customers are offered an introductory selection ......
  • Introduction to the Unified Agenda of Federal Regulatory and Deregulatory Actions
    • United States
    • Federal Register January 08, 2013
    • January 8, 2013
    ...Alternative Fuel Rule. 76 FR 31467. --------------------------------------------------------------------------- Negative Option Rule, 16 CFR Part 425. The Negative Option Rule governs the operation of prenotification subscription plans. Under these plans, sellers ship merchandise automatica......
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6 cases
  • Wisniewski v. Rodale, Inc., No. Civ.A. 03-742.
    • United States
    • United States District Courts. 3th Circuit. United States District Court (Eastern District of Pennsylvania)
    • December 20, 2005
    ...an objective disclosure standard — enforceable through 39 U.S.C. § 3009 — that Rodale's Order Card did not meet. Id. at 16:2-19:25; see 16 C.F.R. § 425.1. As I noted in my previous opinion, I could find no authority linking the FTC Rule and the Postal Reorganization Act. See Karnuth, 2005 W......
  • United States v. MyLife.com, Inc., Case No. 2:20-cv-6692-JFW (PDx)
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Central District of California
    • November 6, 2020
    ...look to a different FTC rule governing a different type of negative option—i.e. , the Prenotification Negative Option Rule codified at 16 C.F.R. § 425.1.2 Memo. at 7. MyLife's argument, in a nutshell, is that because the Prenotification Negative Option Rule does not apply to automatic renew......
  • Storer Communications, Inc. v. State, Dept. of Legal Affairs, No. 91-1556
    • United States
    • Court of Appeal of Florida (US)
    • July 31, 1991
    ...Act, 15 U.S.C. 45(a)(1), as amended and in effect on April 1, 1983. The FTC regulation that governs negative option marketing plans is 16 C.F.R. 425. According to the FTC record, the proceedings it held before adopting 16 C.F.R. 425 failed to demonstrate that negative option plans are so op......
  • Fed. Trade Comm'n v. Amg Servs., Inc., Case No. 2:12-cv-536-GMN-VCF
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. District of Nevada
    • August 28, 2015
    ...address the Commission's negative option rule. The negative option rule governs "goods and merchandise," not financial instruments. See 16 C.F.R. § 425.1. Because the subject matter of the Commission's complaint concerns financial instruments, and not goods or merchandise, the negative opti......
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10 firm's commentaries
  • CFPB Enforcement by the Numbers
    • United States
    • JD Supra United States
    • December 22, 2014
    ...These rules include: Telemarketing Sales Rule (16 CFR Part 310); Use of Prenotification Negative Option Plans (16 CFR Part 425); Rule Concerning Cooling-Off Period for Sales Made at Homes or at Certain Other Locations (16 CFR Part 429); Preservation of Consumers’ Claims and Defenses (16 CFR......
  • FTC issues guidance on negative option programs and warns of increased enforcement
    • United States
    • LexBlog United States
    • November 3, 2021
    ...(“ROSCA”) (15 U.S.C. §§ 8401-8405), the Telemarketing Sales Rule (16 C.F.R. § 310), the Use of Prenotification of Negative Plans Rule (16 C.F.R. § 425), the Postal Reorganization Act (also known as the Unordered Merchandise Rule) (39 U.S.C. § 3009), and the Electronic Funds Transfer Act (15......
  • Fintech Legal Report—Week of November 5, 2021
    • United States
    • LexBlog United States
    • November 9, 2021
    ...and the Telemarketing Sales Rule (16 C.F.R. Part 310), as well as the Rule on the Use of Prenotification Negative Option Plans (16 C.F.R. Part 425), the Electronic Fund Transfer Act (EFTA) (15 U.S.C. §§ 1693-1693r), and the Postal Reorganization Act (i.e., the Unordered Merchandise Statute)......
  • CFPB issues circular on negative option marketing
    • United States
    • LexBlog United States
    • January 23, 2023
    ...Act (15 U.S.C. §§ 8401-8405), the Telemarketing Sales Rule (16 C.F.R. § 310), the Use of Prenotification of Negative Plans Rule (16 C.F.R. § 425), the Postal Reorganization Act (also known as the Unordered Merchandise Rule) (39 U.S.C. § 3009), and the Electronic Funds Transfer Act (15 U.S.C......
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3 books & journal articles
  • The unexplored territory of unfairness in Florida's Deceptive and Unfair Trade Practices Act.
    • United States
    • Florida Bar Journal Vol. 73 Nbr. 5, May 1999
    • May 1, 1999
    ...material); the rule on mail or telephone order merchandise (16 CFR 435), and the rule on use of negative option plans by sellers (16 CFR 425). By FDUTPA's terms, rules issued by the FTC pursuant to laws other than the FTC act (found at 16 CFR ch. 1 subch. C (parts 300-311)), as well as FTC ......
  • Per se violations of the Florida Deceptive and Unfair Trade Practices Act.
    • United States
    • Florida Bar Journal Vol. 76 Nbr. 5, May 2002
    • May 1, 2002
    ...718.122(1) (condo leases), and 719.112 (Co-op leases). (16) 16 C.F.R. Part 429. (17) 16 C.F.R. Part 436. (18) 16 C.F.R. Part 433. (19) 16 C.F.R. Part 425. (20) 16 C.F.R. Part 453. (21) 16 C.F.R. Part 435. (22) Nieman v. Dryclean U.S.A. Franchise Company, Inc., 178 F. 3d 1126 (11th Cir. 2000......
  • 68 J. Kan. Bar Assn. August, 16 (1999). 1999 LEGISLATIVE WRAP UP.
    • United States
    • Kansas Bar Journal Nbr. 1999, January 1999
    • January 1, 1999
    ...that recipient would not be obligated to pay for them. Exempted are sales of property and services regulated by and in compliance with 16 CFR 425 of the Federal Trade Commission and contractual plans such as subscription arrangements or other arrangements which a supplier periodically ships......
4 provisions
  • Chapter 65, HB 170 – AK SECURITIES ACT; PENALTIES; CRT. RULES
    • United States
    • Alaska Session Laws
    • January 1, 2018
    ...the club not to ship the offered merchandise; and(ii) that is regulated by the Federal Trade Commission as a negative option plan under 16 C.F.R. Part 425;(11) by a publisher, or a publisher's agent operating under a written agreement between a publisher and the agent, who is soliciting the......
  • HB 110 – Creates appropriations for FY 2022-2023
    • United States
    • Ohio Session Laws
    • January 1, 2021
    ...solicits the sale on behalf of a membership club operating in compliance with regulations adopted by the federal trade commission in 16 C.F.R. 425; (9) A supervised financial institution or its subsidiary. As used in division (B)(9) of this section, "supervised financial institution" means ......
  • Chapter 22, SB 35 – 2015 REVISOR'S BILL
    • United States
    • Alaska Session Laws
    • January 1, 2015
    ...who is registered under AS 45.63 and who complies with AS 45.63; or(2) a prenotification negative option plan that is regulated by 16 C.F.R. Part 425 [16 C.F.R. 425] and that complies with 16 C.F.R. Part 425 [16 C.F.R. 425].* Sec. 46. AS 45.45.930(e)(1) is amended to read:(1) "opt-out marke......
  • File 36, HB 199 – Enact Ohio Residential Mortgage Lending Act
    • United States
    • Ohio Session Laws
    • January 1, 2017
    ...solicits the sale on behalf of a membership club operating in compliance with regulations adopted by the federal trade commission in 16 C.F.R. 425;(9) A supervised financial institution or its subsidiary. As used in division (B)(9) of this section, "supervised financial institution" means a......

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