Title 15 — Commerce and TradeRelease 119-73
§8403 Negative option marketing on the Internet
Title 15 › Chapter CHAPTER 110— - ONLINE SHOPPER PROTECTION › § 8403
Summary
Online sellers may not charge people through an internet "negative option" (as the FTC defines it) unless they follow three rules. They must clearly show all important terms in writing before taking billing details. They must get the customer's clear, informed OK before charging an account. They must provide a simple way to stop recurring charges.
Full Legal Text
Title 15, §8403
Commerce and Trade — Source: USLM XML via OLRC
It shall be unlawful for any person to charge or attempt to charge any consumer for any goods or services sold in a transaction effected on the Internet through a negative option feature (as defined in the Federal Trade Commission’s Telemarketing Sales Rule in part 310 of title 16, Code of Federal Regulations), unless the person—
(1)provides text that clearly and conspicuously discloses all material terms of the transaction before obtaining the consumer’s billing information;
(2)obtains a consumer’s express informed consent before charging the consumer’s credit card, debit card, bank account, or other financial account for products or services through such transaction; and
(3)provides simple mechanisms for a consumer to stop recurring charges from being placed on the consumer’s credit card, debit card, bank account, or other financial account.
Reference
Citations & Metadata
Citation
15 U.S.C. § 8403
Title 15 — Commerce and Trade
Last Updated
Apr 6, 2026
Release point: 119-73