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3mo ago

FTC Extends Enforcement Deadline for Subscription Cancellation Rule to July

The commission voted unanimously to delay compliance requirements for the Negative Option Rule by 60 days, citing the complexity of implementation and ongoing legal challenges.

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 a subscription. Photo courtesy Microsoft
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A keyboard with a single key featuring an "X" icon is set against a blue background. The "X" symbol typically represents rejection, cancellation, or incorrect choices, emphasizing decision-making processes. The minimalist design of the keyboard, combined with the vibrant blue backdrop, creates a modern look that highlights themes of selection and error management.

Overview

  • The FTC has pushed the enforcement of its updated Negative Option Rule, including the 'click-to-cancel' provision, to July 14, 2025, after a unanimous 3-0 vote on May 10.
  • The rule mandates that canceling a subscription must be as simple as signing up and requires companies to disclose cancellation terms before collecting payment.
  • Originally effective on January 19, 2025, enforcement of certain provisions had already been deferred to May 14 before this latest extension.
  • The decision to delay enforcement was based on a reassessment of the burdens businesses face in complying with the rule's requirements.
  • The FTC remains open to amending the rule if enforcement reveals significant compliance issues, with legal challenges from industry groups still under review in the Eighth Circuit.