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negative option
[neg-uh-tiv op-shuhn]
noun
a clause in a sales contract, such as for a series of books or records, that provides that merchandise will be sent periodically to subscribers unless they notify the company in writing that it is not wanted.
Other 51³Ō¹Ļ Forms
- negative-option adjective
51³Ō¹Ļ History and Origins
Origin of negative option1
Example Sentences
The rule expands the FTCās restrictions on ānegative optionā offers, which automatically start, renew or expand a service unless a consumer takes action to stop it.
In her dissenting statement, Commissioner Melissa Holyoak said the rule not only exceeded the agencyās legal authority but also āincentivizes companies to avoid negative option features that honest businesses and consumers find valuable.ā
The FTC said itās āmodernizingā the 1973 Negative Option Rule in order to carry out its mission of combating unfair and deceptive business practices.
At issue is the use of ānegative optionā plans, which presume that consumers accept an offer unless they affirmatively decline it ā like a free trial that continues as a paying subscription.
This cancellation trap is often part of ānegative optionā marketing.
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