FTC's Click-to-Cancel Rule Delayed for 60 Days

WASHINGTON, May 12, 2025– The Federal Trade Commission has announced a 60-day delay on its final Click-to-Cancel Rule, previously known as the Negative Option Rule. 

Adopted in 2024 under FTC Chair Lina Khan, the Click-to-Cancel Rule was anticipated to start on May 14. On Friday, the FCC voted to delay the process for 60 days, making July 14, 2025 the date for companies to comply with the FTC's standards. The FTC’s delay had the support of FTC Chairman Andrew Ferguson and Commissioners Melissa Holyoak and Mark Meador, all Republicans.

The Negative Option Rule was first established to regulate companies’ abilities to renew subscription services with businesses and consumers. In their recent statement to the public, the FTC explained that it will “prohibit companies from making it any more difficult for consumers to cancel than it was to sign up.” 

The statement then lists four specific disclosures: “(1) the charges will be recurring unless the consumer cancels and, for trials, that charges will increase after the trial period, (2) the deadline to stop charges, (3) the amount and frequency of the charges, and (4) how to find the cancellation mechanism. No other information can be included that undermines consumers’ ability to understand those four disclosures.”

NCTA – The Internet & Television Association President and CEO, Michael Powell, pointed out a future complication: “A customer may face unintended consequences if they want to cancel only one service in the package. Canceling part of a discounted bundle may increase the price for remaining services,” he said.

The FTC, which is defending the rules in federal court, urged covered entities to prepare for full enforcement.  

“Starting July 14, 2025, regulated entities must be in compliance with the whole of the Rule because the Commission will begin enforcing it,” the FTC statement said. “Of course, if that enforcement experience exposes problems with the Rule, the Commission is open to amending the Rule to address any such problems.”