May 12, 2025 11:19:00

The implementation of the 'rules to make it easier to cancel subscriptions' will be postponed for two months

The US Federal Trade Commission (FTC) announced the

Negative Option Rule (commonly known as Click-to-Cancel) in October 2024, which requires the implementation of easy cancellation methods for paid subscription plans and paid membership plans. Some provisions of this rule were scheduled to come into effect on May 14, 2025, but it was announced that it would be postponed by two months until July 14, 2025.

Statement of the Commission Regarding the Negative Option Rule - negative-option-rule-delay-commission-statement.pdf
(PDF file) https://www.ftc.gov/system/files/ftc_gov/pdf/negative-option-rule-delay-commission-statement.pdf

FTC delays enforcement of click-to-cancel rule | TechCrunch
https://techcrunch.com/2025/05/10/ftc-delays-enforcement-of-click-to-cancel-rule/

Many paid apps and paid online services have subscription-based contracts that require periodic payment. Joining these subscription plans is easy enough to do with just a few clicks, but canceling often requires complicated procedures, including contacting the customer by phone or email.

The FTC has been concerned about the large number of services that use complicated cancellation methods, and in March 2023 proposed the introduction of new rules stating that 'subscription cancellation should be as easy as joining the process.' In October 2024, the FTC announced the 'Negative Option Rule (commonly known as Click-to-Cancel),' which requires businesses to implement a simple method for canceling subscriptions.

Federal Trade Commission announces final rules for 'click to cancel' to make it easier for consumers to cancel paid subscriptions - GIGAZINE

The FTC's decision has drawn fierce opposition from many industry groups, including the National Cable Television Association (NCTA), the Interactive Advertising Bureau (IAB), the Electronic Security Association (ESA), the Michigan Newspaper Association, and the National Federation of Independent Business (NFIB), who have filed lawsuits seeking to block the Negative Option Rule.

Cable TV industry groups ask court to block one-click subscription cancellation rules - GIGAZINE

The FTC also acknowledged that compliance with the Negative Option Rule would be difficult, and when it announced the Negative Option Rule in October 2024, it stated that it would wait until May 14, 2025 to implement some provisions, stating that 'compliance with the rule will take time, given its complexity.' Then, on May 9, 2025, it stated that 'after conducting a new evaluation of the burden imposed by enforcing the rule, we have determined that the initial grace period is not sufficient,' and announced that it would postpone implementation until July 14, 2025.

The FTC voted 3-0 to postpone the Negative Option Rule. The FTC usually has five commissioners, but President Donald Trump dismissed two Democratic commissioners on March 18, 2025, leaving the number at three at the time of writing. The dismissed commissioners have filed a lawsuit against President Trump , arguing that 'President Trump's decision violates Supreme Court precedent that states that the president cannot dismiss FTC commissioners without just cause .'