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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 Words From
- neg·a·tive-op·tion adjective
Word History and Origins
Origin of negative option1
Example Sentences
The rule expands the FTC’s restrictions on “negative option” 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 agency’s legal authority but also “incentivizes companies to avoid negative option features that honest businesses and consumers find valuable.”
The FTC said it’s “modernizing” 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 “negative option” plans, which presume that consumers accept an offer unless they affirmatively decline it — like a free trial that continues as a paying subscription.
This cancellation trap is often part of “negative option” marketing.
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