Proposed Amendments to the FTC’s Negative Option Rule and Potential Impact on Direct Sellers
On March 23,2023 the FTC published a notice to amend the Negative Option Rule (16C.F.R. §425). At first blush, the proposed amendments to the Rule seem reasonable and fair. But direct sellers must BEWARE! There’s a seemingly innocuous element to the proposed amendments that negates a defendant’s ability to contest injunctive relief and damages.