A bill will be submitted to make it mandatory to 'click to cancel' paid subscriptions, making them easier to cancel
Some subscription services attempt to retain users by making cancellation difficult, requiring multiple confirmations or even chat or phone calls, even though signing up is quick and easy.
(PDF file)To codify the rule issued by the Federal Trade Commission relating to click-to-cancel, and for other purposes
https://sherman.house.gov/sites/evo-subsites/sherman.house.gov/files/evo-media-document/sherma_059_xml.pdf
US moves to ban shady subscription auto-renewals after FTC court loss - Ars Technica
https://arstechnica.com/tech-policy/2025/07/click-to-cancel-rule-cable-companies-fought-to-nullify-could-be-revived/
While paid subscriptions are easy to sign up for, consumers have complained that the cancellation process is extremely complicated and difficult to cancel. The FTC stated that 'Americans' time and money are being sacrificed for the profits of large corporations,' and announced that, starting around August 2024, the then-President Joe Biden administration would begin promoting proposals to make it easier to cancel subscriptions.
Federal Trade Commission proposes rules requiring companies to make it easier to cancel subscriptions - GIGAZINE
The FTC's 'Negative Option Rule' (commonly known as 'Click-to-Cancel'), which requires companies to implement easy cancellation methods for paid subscription and membership plans, was scheduled to take effect on May 14, 2025, but was delayed by two months due to strong opposition from many industry groups. As a result, about a week before the postponed effective date, a federal appeals court ruled that the FTC had 'failed to follow important legal procedures in its rulemaking process,' invalidating the FTC's rule.
Federal appeals court rules that mandatory 'click to cancel' is invalid - GIGAZINE
The most problematic aspect of the FTC's Click-to-Cancel rule was that it did not conduct a detailed cost-benefit analysis known as a 'preliminary regulatory analysis.' The FTC initially determined that the impact of amending the rule would be less than the $100 million (approximately 14.5 billion yen) required for an analysis and proposal, and therefore believed that no analysis was necessary. However, a subsequent hearing by an administrative law judge concluded that 'the actual economic impact exceeds $100 million.' As a result, the court found that 'this was not a mere formal error, but that the parties involved suffered substantial harm,' and invalidated the Click-to-Cancel rule.
It was also thought that the invalidation of the Click-to-Cancel rule may have been related to a change in administration. When the rule was enacted, the FTC was under the Biden administration, with three members who voted in favor and two who voted against being Republicans. However, after taking office, President Donald Trump removed the two Democrats from the FTC, leaving the FTC's membership consisting entirely of Republicans as of July 2025.
Democratic lawmakers have introduced legislation to reinstate the Click-to-Cancel rule on July 30, 2025. The legislation, which follows on from the FTC's position, requires companies to 'provide a simple and direct mechanism for canceling a subscription and immediately halting charges,' as well as to obtain clear and direct consent before enrolling in auto-renewal.
Democratic Congressman Chris Deluzio said, 'Subscriptions are just another way American companies try to rip people off, and they're confusing because they can't be easily canceled. Canceling a subscription shouldn't be a ploy or a trap that wastes your hard-earned time and money. It should be as easy as signing up.' Senator Ruben Gallego, a Democrat who introduced a related bill in the Senate, also argued for the need for click-to-cancel regulations, saying, 'Too many companies are locking customers into fees they didn't agree to through vague fine print and confusing cancellation procedures. They're continuing to charge their cards every month in the hopes that customers will forget or give up.'
At the time of writing, only Democrats support the Click-to-Cancel bill, so it's unclear whether the bill will gain traction. However, experts say the rule could be the 'most popular' piece of legislation Congress could enact this year, and Democrats will likely appeal to public support for Click-to-Cancel in order to gain Republican support.
If the Click-to-Cancel bill were to pass, violations would be considered 'unfair or deceptive acts or practices' under FTC regulations. Companies found to be obstructing the subscription cancellation process could face hefty fines of over $50,000 per violation.
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