Question

The federal trade commission (ftc) and u.s. postal service have rules that govern the use of _____ plans whereby a company proposes to send merchandise to consumers and expects payment unless a consumer sends a notice of rejection or cancellation.

Answer 1

These are "negative option" plans. In these plans, the consumer has the requirement to send a "negative" notice or cancellation notice, otherwise they will be billed or continue to be billed for these items. These options can be onerous because it requires that the consumer remember that they are paying for an item on a constant basis and have to remember to cancel it when they don't want it.