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2016CFPB0022Document 12Filed 01/26/2023Page 1 of 5UNITED STATES OF AMERICA CONSUMER FINANCIAL PROTECTION BUREAU File No. 2016CFPB0022 STIPULATION AND CONSENT TO THE ISSUANCE OF THE FIFTH MODIFICATION

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What is unlawful negative option marketing?

Unlawful negative option marketing refers to the practice of automatically enrolling consumers in a subscription or service unless they explicitly opt out, often without clear and conspicuous disclosure of the terms.

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Businesses that engage in negative option marketing practices which violate consumer protection laws are required to file reports concerning such activities.

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To fill out unlawful negative option marketing, businesses must provide detailed information on their subscription practices, including terms, the opt-out process, and any consumer complaints received.

What is the purpose of unlawful negative option marketing?

The purpose of regulating unlawful negative option marketing is to protect consumers from deceptive practices and ensure they are informed about their subscriptions and any associated costs.

What information must be reported on unlawful negative option marketing?

The reporting must include the number of consumers enrolled, the opt-out rates, complaints received, and details of the marketing practices used.

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