FTC delays enforcement of ‘click-to-cancel' for subscriptions by 60 days

Miami Herald

10-05-2025

May 10 (UPI) -- The Federal Trade Commission has delayed enforcing the Negative Option Rule, which is the "click-to-cancel" option requiring companies to make it as easy to cancel subscriptions and other programs.
On Friday, commission members by a 3-0 vote deferred required compliance by 60 days to July 14.
"Of course, if that enforcement experience exposes problems with the Rule, the Commission is open to amending the Rule to address any such problems," the commission said in a statement.
The rule that went into effect on Jan. 19 that includes physical and digital subscriptions as well marketing, including prenotification plans, continuity plans, automatic renewals and free trial conversion offers.
Consumers often found it was difficult to cancel them without a few clicks on a website.
The FTC introduced the Negative Option Rule in 1973 to regulate continuity plans, automatic renewals and free trial offers, regardless of whether they appeared online, on the phone or in person.
The amendments to the Negative Option Rule strengthen the rule. The amendments "require companies that sign consumers up for recurring charges to clearly and conspicuously disclose all material terms of the transaction and to obtain express informed consent to a negative-option feature. And they prohibit companies from making it any more difficult for consumers to cancel than it was to sign up."
Companies also must provide relevant information about cancellation before they collect customers' money.
Because of concerns "it would take a substantial amount of time to come into compliance," the agency originally deferred it until May 14, the commission said.
After "a fresh assessment of the burdens that forcing compliance by this date would impose," it was delayed another 60 days.
The amended rule was first proposed in 2023.
The Eighth Circuit is considering a challenge to the rule by industry groups. The court declined to stay the implementation dates in January. That circuit includes seven Plains states.
Copyright 2025 UPI News Corporation. All Rights Reserved.