FTC Delays Click-to-Cancel Rule Enforcement

FTC Delays Enforcement of Click-to-Cancel Rule

The Federal Trade Commission (FTC) has postponed enforcement of the Negative Option Rule, commonly known as the "click-to-cancel" rule. This rule mandates businesses to make subscription cancellations as easy as signing up.

Originally slated for May 14, 2025, enforcement is now delayed by 60 days to July 14, 2025. The FTC cited the complexity of compliance as the reason for the delay.

Simplifying Subscription Cancellations

Proposed in 2023, the rule targets businesses offering both physical and digital subscriptions. This includes services ranging from streaming platforms to gym memberships. The rule aims to prevent complicated or time-consuming cancellation processes.

Under the Negative Option Rule, businesses must allow customers to cancel subscriptions through the same method used for signup. For example, if a customer subscribes online, they must be able to cancel online as well. Companies must also provide clear cancellation information before collecting payment.

Reason for the Delay

The FTC stated that the original deferral period was insufficient considering the complexities of compliance for businesses. The commission voted 3-0 to approve the delay.

Having conducted a fresh assessment of the burdens that forcing compliance by this date would impose, the Commission has determined that the original deferral period insufficiently accounted for the complexity of compliance.

The FTC confirmed that enforcement will begin on July 14, 2025, requiring all regulated entities to be in compliance. The FTC also expressed openness to amending the rule if enforcement reveals any issues.

The FTC's decision follows a recent reduction in commissioners. Former President Trump fired two Democratic commissioners in March 2025. The dismissed commissioners subsequently filed a lawsuit challenging their removal. Learn more about the dismissed commissioners. Read more about the lawsuit.

For further information about the Negative Option Rule and the delay, visit the FTC website. Read the FTC's statement on the delay. Learn more about the original proposal.