Under FTC rules, there's nothing illegal about these provisions, as long as the terms are clearly disclosed. Businesses say they have adopted such practices as a convenience to consumers, saving time and annoyance. A Sears spokesman said the company sent the Gold MasterCard to customers who infrequently used their Sears card, thinking it might be more useful to them. The MasterCard, issued through Sears's own bank, also carries a lower interest rate than the Sears card. Sears wouldn't say how many mailings went out, but about 12 million of the chain's 60 million cardholders accepted the substitution, according to spokesman Bill Masterson.
Consumer advocates say opt-out marketing is growing because it is profitable.
The reason is obvious. A lot of consumers won't notice the negative option in the mouse print. It's a bad, bad practice, yet it's not unlawful. After signing up for the club, members usually receive regular shipments and are charged for each item unless they send it back with a rejection notice. But now the technique is being used in ways that draw less consumer attention than a package arriving monthly.