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B-336892 Dec 05, 2024 1 (2024-12-05)

handle is hein.gao/gaoref0001 and id is 1 raw text is: GAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 B-336892 December 5, 2024 The Honorable Maria Cantwell Chair The Honorable Ted Cruz Ranking Member Committee on Commerce, Science, and Transportation United States Senate The Honorable Cathy McMorris Rodgers Chair The Honorable Frank Pallone, Jr. Ranking Member Committee on Energy and Commerce House of Representatives Subject: Federal Trade Commission: Negative Option Rule Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Federal Trade Commission (FTC) entitled Negative Option Rule (RIN: 3084-AB60). We received the rule on November 22, 2024. It was published in the Federal Register on November 15, 2024. 89 Fed. Reg. 90476. The stated effective date of the rule is January 14, 2025. This rule amends FTC's trade regulation Rule Concerning Use of Prenotification Negative Option Plans, retitled Rule Concerning Recurring Subscriptions and other Negative Option Programs. The rule now applies to all negative option programs in any media. Among other things, the rule (1) prohibits misrepresentations of any material fact made while marketing using negative option features; (2) requires sellers to provide important information prior to obtaining consumers' billing information and charging consumers; (3) requires sellers to obtain consumers' unambiguously affirmative consent to the negative option feature prior to charging them; and (4) requires sellers to provide consumers with simple cancellation mechanisms to immediately halt all recurring charges. The Congressional Review Act (CRA) requires a 60-day delay in the effective date of a major rule from the date of publication in the Federal Register or receipt of the rule by Congress, whichever is later. 5 U.S.C. § 801(a)(3)(A). The rule was published in the Federal Register on November 15, 2024, and was received by the House and the Senate on November 20, 2024. 89 Fed. Reg. 90476; Email from Attorney, FTC, to CRA Rules, GAO, Subject: Another rule from the FTC (Nov. 22, 2024). The rule has a stated effective date of January 14, 2025, though regulated entities will have until May 14, 2025, to comply with sections 425.4 through 425.6. Therefore, the stated effective date is less than 60 days from November 20, 2024.

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