News

Eighth Circuit Vacates FTC Negative Option Rule

Just prior to its coming into effect, the Eighth Circuit has completely nullified the FTC’s Negative Option (or “click-to-cancel”) rule, a consumer-friendly set of restrictions that were to be imposed on businesses deploying such options as auto-renewals and free trial conversion offers. It’s thought unlikely that the FTC as currently constituted will take another look at the issue. Meanwhile, speaking of courts interfering with agencies, The Supreme Court has ruled that U.S. district courts are not bound to follow a federal agency’s interpretation of a statute.