Business Guide to Online Trial Offers, Product Memberships, and Negative Options
Who is Covered?
Sales or advertising, online or otherwise, to Utah residents or by Utah businesses is covered by Utah's consumer protection laws. More specifically, conduct is covered if it occurs at least partly within Utah, occurs outside of Utah but is directed toward Utah, or utilizes "transactional resources" located within the state. For more information, see Utah Code § 13-2-6(4) and Utah Code § 13-11-6 .
The following is a partial list of businesses that have been observed using a free trial/negative option model in online sales:
- E-cigarettes and E-cigarette liquids/"e-juice"
- Books and Magazines
- Online magazines
- Skin creams and other beauty products
- Clothing and shoes
- Fan memorabilia
- Food delivery
These regulations may not apply if the product sold is not for "primarily personal, family, or household purposes", and is not a business opportunity. Utah Code § 13-11-3(2) . The Division is happy to assist you with questions you may have about the law, but cannot give you legal advice. You may wish to ask an attorney if you are unsure whether the laws discussed in this guide apply to you. You may be required to follow additional federal law relating to negative options not addressed in this guide.