The Knot

The FTC has brought actions challenging companies alleged to have failed to comply with its Negative Option Rule or otherwise (like The Knot) -- (i) by not disclosing the material terms of an offer before consumers have incurred a financial obligation; (ii) by not making such disclosures clearly or conspicuously or in an understandable manner; (iii) by not obtaining a consumer’s affirmative consent to the offer; and (iv) by impeding the effective operation of cancellation procedures. A company generally can comply with the federal and state laws by: > Provide clear and conspicuous disclosure of the full terms of the offer upfront. > Obtain unambiguous, affirmative consent from the consumer for any automatic charge or renewal. > Provide an easy-to-use cancelation mechanism