Key points:
- The FTC has delayed enforcement of the “click-to-cancel” rule by 60 days, pushing the date to July 14.
- The rule requires companies to offer subscription cancellations as easy as sign-ups.
- The delay follows internal concerns over compliance burdens and legal controversy at the Commission.
The Federal Trade Commission voted unanimously on Friday to delay enforcement of its much-anticipated “click-to-cancel” rule, giving businesses until July 14 to comply with new subscription cancellation requirements. The rule, formally known as the Negative Option Rule, aims to prevent companies from forcing customers to jump through hoops to cancel subscriptions that were easy to begin.
Originally proposed in 2023, the rule requires that companies allow customers to cancel subscriptions using the same method they used to sign up — whether that’s through a website, mobile app, or other digital interface. For example, if a user signs up online with a few clicks, they must be able to cancel just as easily online. The rule also mandates that cancellation terms be disclosed before payment is collected, to improve transparency and reduce friction for consumers.
The FTC said in a statement reported by TechCrunch that although the rule went into effect on January 19, enforcement was initially deferred until May 14. That deadline has now been pushed an additional 60 days after the agency reassessed the burdens on businesses to implement compliance mechanisms.
“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 agency said.
The Commission emphasized that enforcement will begin July 14 without further delay. “Regulated entities must be in compliance,” the FTC noted, while also indicating a willingness to consider future amendments if enforcement reveals unanticipated problems.
The commission’s 3-0 vote to approve the delay comes amid political turmoil within the agency. President Donald Trump fired the FTC’s two Democratic commissioners in March, reducing the five-member body to three. The ousted commissioners have since filed a lawsuit, arguing their dismissal violates Supreme Court precedent protecting independent agency leadership from at-will removal.
Despite the internal dispute, the delay received bipartisan support from the remaining commissioners. With enforcement looming, businesses offering digital and physical subscriptions—ranging from media platforms to fitness memberships—are expected to accelerate their compliance efforts to meet the July deadline.
