
FTC Postpones Implementation of 'Click to Cancel' Regulation To Impose Stricter Subscription Cancellation Rules
The FTC has chosen to delay enforcing the 'Negative Option Rule,' which aims to simplify subscription cancellations and tackle companies' deceptive practices.
If you’ve ever found yourself trying to exit an unwanted subscription over the phone, the FTC is here with a new rule—albeit delayed in its enforcement.
The “Negative Option Rule” aims to address deceptive practices that complicate subscription cancellations. Originally set to commence on May 14, enforcement is now pushed back to July 14, 2025, following a unanimous FTC vote.
This delay is meant to give companies ample time to adjust their policies to align with the new regulation, which aims to make cancelling subscriptions less difficult. Additionally, the FTC’s hesitance to initiate enforcement is linked to ongoing legal disputes involving various trade associations contesting the rule.
Ironically, the resistance from industries reliant on subscription models underscores the necessity of this rule. Unduly complex cancellation practices can exploit consumers, creating scenarios where individuals find themselves inadvertently paying for subscriptions they did not intend to continue.
The FTC has stated that the rule is designed to safeguard consumers from unfair business practices. It aims to ensure that companies maintain clear communication about cancellation processes, emphasizing that consumers should not have to navigate complex procedures to stop unwanted charges.