FTC Delays Enforcement of Click-to-Cancel Rule to July 14th 2025

The Federal Trade Commission (FTC) has announced a delay in enforcing its "click-to-cancel" rule, extending the deadline to July 14th, 2025. This rule, also known as the Negative Option Rule, requires companies to make canceling subscriptions as straightforward as signing up for them, particularly ensuring that if a subscription can be started online, it must also be cancellable online.

Originally set to be enforced on May 14th, 2025, the FTC decided to postpone enforcement after reassessing the compliance challenges companies face. The decision was unanimous among the three commissioners present, although two commissioners were absent due to recent administrative changes.

The FTC emphasized that starting July 14th, all regulated entities must fully comply with the rule, signaling a firm stance on consumer protection against complicated cancellation processes. However, the agency remains open to amending the rule if enforcement reveals unforeseen issues.

Implications for Businesses and Consumers

For businesses, this delay provides additional time to adjust subscription management systems to comply with the rule, avoiding potential penalties and enhancing customer trust. For consumers, it promises more transparent and hassle-free subscription cancellations, reducing the frustration of being trapped in unwanted services.

The click-to-cancel rule is part of broader efforts by the FTC to protect consumers from deceptive subscription practices and to promote fair business operations in the digital economy.

Looking Ahead

Businesses should use this extension to review and enhance their subscription cancellation processes, ensuring they meet the FTC’s standards. Meanwhile, the FTC’s openness to amending the rule suggests ongoing dialogue and potential refinements to balance regulatory goals with practical business considerations.