1. Search the Internet for a book club, a music club, and a movie club that offer negative option plans. Describe the incentives offered to get consumers to join, the obligations of membership, and the mechanism by which members can deny future merchandise. Does that club give adequate information for consumers to understand their obligations or is some part of the offer deceiving?

2. Learn about the Federal Trade Commission’s (FTC) Negative Option Rule at www.ftc. gov/bcp/edu/pubs/consumer/products/pro09.shtm and discuss concerns the government and consumers have with this direct marketing tactic.

“Six books for 99¢,” “12 CDs for $1.00,” or “7 DVDs for FREE!” We’ve all seen these offers—but are they too good to be true? The Book-of-the-Month Club and Columbia House are just two wellknown examples of the many buying clubs. These clubs can cause problems for consumers who do not always fully understand what they are getting themselves into. By accepting such offers, consumers may unwittingly join a “prenotification negative option plan.” Under these plans, if you don’t tell the marketer that you don’t want additional merchandise sent to you it is sent automatically and you are billed for it. Some clubs require a minimum number of purchases at regular prices before you can cancel membership. Critics claim that marketers offer enticing incentives to lure consumers but are deceptive about the membership obligations.