Agency Information Collection Activities; Proposed Collection; Comment Request; Extension

Issuing agencies

Abstract

In accordance with the Paperwork Reduction Act of 1995 (PRA), the Federal Trade Commission (FTC or Commission) is seeking public comment on its proposal to reinstate and extend for three additional years the information collections contained in the FTC's rule entitled "Use of Prenotification Negative Option Plans" ("Negative Option Rule" or "Rule") as that rule was written before courts vacated the final rule promulgated on November 15, 2024. The current clearance expires on November 30, 2027.

Full Text

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<title>Federal Register, Volume 91 Issue 197 (Wednesday, October 14, 2026)</title>
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[Federal Register Volume 91, Number 197 (Wednesday, October 14, 2026)]
[Notices]
[Pages 65213-65215]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20971]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request; Extension

AGENCY: Federal Trade Commission.

ACTION: Notice.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (PRA), 
the Federal Trade Commission (FTC or Commission) is seeking public 
comment on its proposal to reinstate and extend for three additional 
years the information collections contained in the FTC's rule entitled 
``Use of Prenotification Negative Option Plans'' (``Negative Option 
Rule'' or ``Rule'') as that rule was written before courts vacated the 
final rule promulgated on

[[Page 65214]]

November 15, 2024. The current clearance expires on November 30, 2027.

DATES: Comments must be filed by December 14, 2026.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Paperwork Reduction 
Act Comment: FTC File No. P044403'' on your comment, and file your 
comment online at <a href="https://www.regulations.gov">https://www.regulations.gov</a> by following the 
instructions on the web-based form. If you prefer to file your comment 
on paper, mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Mail 
Stop H-144 (Annex E), Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Hong Park, Attorney, Division of 
Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 
600 Pennsylvania Avenue NW, Washington, DC 20580, (202) 326-2158; 
<a href="/cdn-cgi/l/email-protection#670f1706150c2701130449000811"><span class="__cf_email__" data-cfemail="650d1504170e250311064b020a13">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: 
    Title: Use of Prenotification Negative Option Plans, 16 CFR part 
425.
    OMB Control Number: 3084-0104.
    Type of Review: Reinstatement of and extension of a previously 
approved collection.

Background

    On February 13, 2024, the Office of Management and Budget (OMB) 
approved an extension of the information collections associated with 
the version of the Negative Option Rule effective at the time.\1\ On 
November 15, 2024, the Commission published a final rule (``2024 
Rule'') amending the Negative Option Rule.\2\ On November 18, 2024, the 
OMB approved the additional information collections associated with the 
final rule amendments through November 30, 2027.\3\
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    \1\ Extension without change of a currently approved collection, 
ICR Ref. No. 202307-3084-005, OMB Control Number 3084-0104, 02/13/
2024, available at <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202307-3084-005">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202307-3084-005</a>.
    \2\ FTC, Final Rule: Negative Option Rule, 89 FR 90476 (Nov. 15, 
2024).
    \3\ Revision of a currently approved collection, ICR Ref. No. 
202411-3084-002, OMB Control Number 3084-0104, 11/18/2024, available 
at <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202411-3084-002">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202411-3084-002</a>.
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    On July 8, 2025, the U.S. Court of Appeals for the Eighth Circuit 
vacated the 2024 Rule.\4\ On February 12, 2026, the Commission issued a 
final rule revising the Negative Option Rule to restore it in the form 
it existed before the 2024 Rule became effective.\5\ Thus, only the 
information collections associated with the OMB's February 13, 2024 
approval of an extension for information collections are now in effect 
and need to be extended for three additional years.
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    \4\ Custom Commc'ns, Inc. v. FTC, 142 F.4th 1060, 1074 (8th Cir. 
2025).
    \5\ 91 FR 6507 (Feb. 12, 2026).
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    The Negative Option Rule, as now restored, governs the operation of 
prenotification subscription plans. Under these types of plans--which 
can include things such as a book-of-the-month club, food-of-the-month 
club, or clothing-items-of-the-month club--a seller provides a consumer 
with automatic shipments of merchandise unless the consumer 
affirmatively notifies the seller they do not want the shipment. The 
Rule requires that a seller notify a member that they will 
automatically ship merchandise to the member and bill the member for 
the merchandise if the subscriber fails to expressly reject the 
merchandise beforehand within a prescribed time. The Rule protects 
consumers by: (1) requiring that promotional materials disclose the 
terms of membership clearly and conspicuously; and (2) establishing 
procedures for the administration of such ``negative option'' plans.
    Affected Public: Sellers of prenotification subscription plans.
    Estimated Annual Burden Hours: 2,500 hours.
    Estimated Annual Labor Costs: $160,755 (solely related to labor 
costs).
    Estimated Annual Non-Labor Costs: $0 or de minimis.
    As required by section 3506(c)(2)(A) of the PRA, 44 U.S.C. 
3506(c)(2)(A), the FTC is providing this opportunity for public comment 
before requesting that OMB reinstate and extend the clearance for the 
information collection requirements contained in the Negative Option 
Rule.

Burden Statement

    Estimated Annual Burden Hours: 2,500.
    Based on industry input, FTC staff estimates that no more than 25 
sellers are subject to the disclosure requirements contained in the 
Rule.\6\ FTC staff further estimates that each seller will require 
annually about 100 hours to comply with the Rule's disclosure 
requirements. This yields a total annual burden of 2,500 hours (25 
sellers x 100 hours).
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    \6\ In 2023, FTC staff estimated 25 sellers were subject to the 
Rule's disclosure requirements based on industry input. 88 FR 59922 
(Aug. 30, 2023). That estimate reflected a severe decline from 75 
sellers estimated in 2020. 85 FR 46628 (Aug. 3, 2020). FTC staff 
anticipates that the number of sellers subject to the Rule's 
requirements continues to decline as firms offering prenotification 
negative option plans exit the market and other firms increasingly 
adopt a subscription-based approach without a prenotification 
feature. See, e.g., Sam Spratford, Subscription Addiction, 
Publishers Weekly (May 8, 2026), <a href="https://www.publishersweekly.com/pw/by-topic/industry-news/publisher-news/article/100363-subscription-addiction.html">https://www.publishersweekly.com/pw/by-topic/industry-news/publisher-news/article/100363-subscription-addiction.html</a> (last visited Sept. 15, 2026) (noting 
book-of-the-month sellers offering monthly subscription without 
prenotification negative option feature); Jordan Valinsky, Columbia 
House--yes, it still exists--is going out of business, CNN (Aug. 19, 
2026), <a href="https://www.cnn.com/2026/08/19/media/columbia-house-shut-down">https://www.cnn.com/2026/08/19/media/columbia-house-shut-down</a> 
(last visited Sept. 9, 2026) (reporting that Columbia House, a 
pioneer of product-of-the-month plans with prenotification negative 
option feature, is ceasing operations).
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    Estimated Annual Cost Burden: $160,755 (solely related to labor 
costs).
    Based on recent data from the Bureau of Labor Statistics, the mean 
hourly wage for advertising and promotion managers is approximately 
$74.18 per hour; \7\ compensation for office and administrative support 
personnel is approximately $24.79 per hour.\8\ Assuming that managers 
perform the bulk of the work, and clerical personnel perform associated 
tasks (e.g., placing advertisements and responding to inquiries about 
offerings or prices), the total cost to the industry for the Rule's 
information collection requirements would be approximately $160,755 
[(80 hours managerial time x 25 sellers x $74.18 per hour) + (20 hours 
clerical time x 25 sellers x $24.79 per hour)].
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    \7\ See Occupational Employment and Wages--May 2025, Table 1, at 
<a href="https://www.bls.gov/news.release/ocwage.t01.htm">https://www.bls.gov/news.release/ocwage.t01.htm</a> (mean hourly wage 
rate for advertising and promotion managers).
    \8\ See id. (mean hourly wage rate for office and administrative 
support occupations).
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    Because the Rule has been in effect since 1974, the vast majority 
of the negative option sellers have no current start-up costs. For new 
sellers entering the market, the costs associated with the Rule's 
disclosure requirements, beyond the additional labor costs discussed 
above, are de minimis. Negative option sellers already have access to 
the ordinary office equipment necessary to comply with the Rule. 
Similarly, the Rule imposes few, if any, printing and distribution 
costs. The required disclosures generally constitute only a small 
addition to the advertising for negative option plans. Because printing 
and distribution expenditures are incurred to market the product 
regardless of the Rule, adding the required disclosures results in 
marginal incremental expense.

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Request for Comment

    Pursuant to section 3506(c)(2)(A) of the PRA, the FTC invites 
comments on: (1) whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will be practically useful; (2) the 
accuracy of the agency's estimate of the burden of the proposed 
collection of information, including whether the methodology and 
assumptions used are valid; (3) ways to enhance the quality, utility, 
and clarity of the information to be collected; and (4) ways to 
minimize the burden of the collection of information.
    For the FTC to consider a comment, we must receive it on or before 
December 14, 2026. Your comment, including your name and your state, 
will be placed on the public record of this proceeding, including the 
<a href="https://www.regulations.gov">https://www.regulations.gov</a> website.
    You can file a comment online or on paper. Due to heightened 
security screening, postal mail addressed to the Commission will be 
subject to delay. We encourage you to submit your comments online 
through the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website.
    If you file your comment on paper, write ``Paperwork Reduction Act 
Comment: FTC File No. P044403'' on your comment and on the envelope, 
and mail it to the following address: Federal Trade Commission, Office 
of the Secretary, 600 Pennsylvania Avenue NW, Mail Stop H-144 (Annex 
E), Washington, DC 20580.
    Because your comment will become publicly available at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, you are solely responsible for making sure that 
your comment does not include any sensitive or confidential 
information. In particular, your comment should not include any 
sensitive personal information, such as your or anyone else's Social 
Security number; date of birth; driver's license number or other state 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. You are also 
solely responsible for making sure that your comment does not include 
any sensitive health information, such as medical records or other 
individually identifiable health information. In addition, your comment 
should not include any ``trade secret or any commercial or financial 
information which . . . is privileged or confidential''--as provided by 
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 
16 CFR 4.10(a)(2)--including, in particular, competitively sensitive 
information, such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    Comments containing material for which confidential treatment is 
requested must (1) be filed in paper form, (2) be clearly labeled 
``Confidential,'' and (3) comply with FTC Rule 4.9(c). In particular, 
the written request for confidential treatment that accompanies the 
comment must include the factual and legal basis for the request and 
must identify the specific portions of the comment to be withheld from 
the public record. See FTC Rule 4.9(c). Your comment will be kept 
confidential only if the General Counsel grants your request in 
accordance with the law and the public interest. Once your comment has 
been posted publicly at <a href="http://www.regulations.gov">www.regulations.gov</a>, we cannot redact or remove 
your comment unless you submit a confidentiality request that meets the 
requirements for such treatment under FTC Rule 4.9(c), and the General 
Counsel grants that request.
    The FTC Act and other laws that the Commission administers permit 
the collection of public comments to consider and use in this 
proceeding as appropriate. The Commission will consider all timely and 
responsive public comments that it receives on or before December 14, 
2026. For information on the Commission's privacy policy, including 
routine uses permitted by the Privacy Act, see <a href="https://www.ftc.gov/site-information/privacy-policy">https://www.ftc.gov/site-information/privacy-policy</a>.

Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2026-20971 Filed 10-13-26; 8:45 am]
BILLING CODE 6750-01-P


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