Negative Option Rule
The FTC proposes amendments to the Negative Option Rule to combat unfair or deceptive practices involving recurring charges. This directly impacts auto dealers offering add-on products like GAP waivers, service contracts, or other subscription-based F&I products. Dealers must ensure clear, affirmative consent and easy cancellation for any negative option features.
Aforeworn detected this change in the Auto Dealer F&I Compliance space on July 6, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Franchise dealers, independent used-car dealers, BHPH dealers, F&I managers should confirm how it applies to their specific situation before acting. There is a time constraint attached: Public comments due June 23, 2023 (60 days from publication on April 24, 2023). Final rule effective date TBD after comment period.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Auto Dealer F&I Compliance continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
The FTC is seeking public comment on proposed amendments that would require explicit consumer consent before charging for any negative option feature and mandate simple cancellation mechanisms. This expands existing requirements under the current Rule.
Who it affects
Franchise dealers, independent used-car dealers, BHPH dealers, F&I managers
What you must do
Review current F&I product enrollment processes for negative option features (e.g., automatic renewals, continuity plans). Ensure compliance with proposed consent and cancellation standards. Submit public comments by the deadline to influence final rule.
Deadline
Public comments due June 23, 2023 (60 days from publication on April 24, 2023). Final rule effective date TBD after comment period.
Source: https://www.federalregister.gov/documents/2023/04/24/2023-07035/negative-option-rule
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