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Negative Option Billing

Negative option billing has long been a thorn in the side of consumers, with unscrupulous merchants exploiting this marketing practice to enroll consumers in unwanted subscriptions and services. As the Federal Trade Commission (FTS) has made clear, these deceptive tactics can cause significant financial harm to unsuspecting individuals.

If you believe a merchant is subjecting you to negative option billing, it is important to reach out to an experienced merchant processor litigation expert for help. Contact our offices today for a free consultation.

What is Negative Option Billing?

Negative option billing is a type of marketing practice where consumers are automatically enrolled in a subscription or program unless they actively decline or cancel it. Unfortunately, negative option practices consistently harm consumers, with merchants failing to make adequate disclosures, billing consumers without consent, or making it extremely difficult to cancel the subscription.


How Does Negative Option Billing Affect Consumers?

At the heart of the issue is the lack of explicit consent from the consumer. With negative option billing, merchants leverage a customer's payment information to automatically charge for additional products or services, often without the individual's knowledge or approval.

Fortunately, the FTC has taken steps to address this problem by creating regulations around the Negative Option Rule. This framework requires merchants to make clear and conspicuous disclosures about the terms of the negative option offer and provide an easy method for consumers to cancel the service. If a merchant does not comply with these guidelines, substantial financial penalties and enforcement actions can result.

For consumers who have fallen victim to negative option billing, there are several potential remedies available, including filing a complaint with the FTC and pursuing legal action. If a consumer decides to sue the merchant for violating the FTC's regulations around Negative Option Billing, they can recover monetary damages and injunctive relief that will prevent the merchant from engaging in similar practices in the future.

Negative Option Billing Litigation

When a merchant violates the rules surrounding Negative Option Billing, they must be held accountable. Sigal Law Group has spent years helping individuals all over the country navigate these complex litigations. They will work diligently to ensure you receive the best possible outcome for your case. Contact us today to schedule a free consultation.