Negative Option Billing

Negative Option Billing

Negative Option Billing

Negative option billing charges consumers by treating inaction as consent, requiring clear terms disclosure and cancellation as easy as signing up.

Negative option billing charges consumers by treating inaction as consent, requiring clear terms disclosure and cancellation as easy as signing up.

Negative option billing is a billing structure, common in subscriptions and recurring-payment products, where a consumer's inaction is treated as consent to be charged or continue paying. Regulators such as the FTC (under ROSCA) require clear disclosure of terms, informed consent, and cancellation that is at least as simple as sign-up.