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Show Negative option' defined in an emergency ruling Department of Commerce executive director David Buhlerhas issued an emergency rule which defines certain cer-tain 'negative option' promotions as deceptive or unconscionable un-conscionable under state consumer laws. The emergency emergen-cy rule went into effect June 12 and will be effective for 120 days, at which time it may be made permanent. The department's action is in response to the recent promotion by TCI Cablevision of Utah, Inc. regarding its 'Encore' cable movie channel. TCI proposes to bill consumers who have not requested Encore, and who have not affirmatively taken the initiative to ask TCI to discontinue the service. TCI provides cable service to approximately 175,000 subscribers throughout the state of Utah. Utah's Consumer Sales Practices Act prohibits deceptive or unconscionable practice, unless the busi ness first makes certain disclosures about the option to the customer, and obtains the customer's approval. "This is an issue of basic fairness," Buhler stated. "A company shouldn't be able to sell a consumer one thing, and then, after the fact, bill them for products or services they hadn't ordered." The rule would apply to all negative option promotions promo-tions fitting its definition, not just those offered by a particular company such as TCI. Marketing programs such as those common to book or record clubs where the consumer agrees up front to exercise a negative option op-tion in order to refuse to purchase merchandise or services, ser-vices, would not be considered deceptive. "We will be accepting public comment, and, based on the input we receive, be proposing a permanent rule," Buhler added. |