negative option

[neg-uh-tiv op-shuhn]

noun

1. a clause in a sales contract, such as for a series of books or records, that provides that merchandise will be sent periodically to subscribers unless they notify the company in writing that it is not wanted.

Other Word Forms

• negative-option adjective

Word History and Origins

Origin of negative option¹

First recorded in 1970–75

Example Sentences

Its target was “negative option” programs, in which businesses assume customers have consented for automatic renewals unless the customers explicitly cancel.

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In 2019, the FTC began working on expanding its 1973 regulation of book clubs to cover all forms of negative option marketing and published a final rule last November.

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Industry could hardly be unaware that the rule was under consideration; businesses had mobilized to protect negative option marketing starting at least in 2019, and they hardly lacked for resources to “dissuade” the commission.

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When the FTC started investigating negative option programs, “we were stunned to see just how deliberate a business strategy it is,” Khan, who oversaw the regulation’s development, told Torre.

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“We certainly do not endorse the use of unfair and deceptive practices in negative option marketing,” they wrote.

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