The Federal Trade Commission (FTC) has postponed enforcement of its highly anticipated “Click-to-Cancel” rule, pushing the effective date from May 14 to July 14, 2025. While businesses welcome the extra time to prepare, consumer advocates express frustration, calling it a setback for consumer rights.
What Is the Click-to-Cancel Rule?
First finalized in October 2024, the rule updates the FTC’s Negative Option Rule, aiming to protect consumers with the following requirements.
- Clear disclosure of subscription terms before collecting billing info.
- Informed consent prior to auto-enrollment in recurring billing.
- Cancellation as easy as sign-up—if you signed up online, you must be able to cancel via the same channel, without extra hoops like phone calls.
Why the Delay?
On May 9, the FTC—now under a Republican majority—unanimously agreed to defer enforcement by 60 days. The agency cited significant compliance burdens on businesses and the complexities of implementation.
This delay comes while the rule faces legal challenges by industry groups in the Eighth Circuit, questioning the FTC’s authority and scope.
Consumer Advocate Reaction
Former FTC commissioners Alvaro Bedoya and Rebecca Slaughter, ousted during the agency’s leadership shakeup, strongly criticized the delay:
“Businesses have already had over six months to prepare … Why do they get another two months to comply?”
They warned the postponement will prolong consumer suffering by keeping complicated cancellation barriers in place.
Business Perspective
Industry groups like the U.S. Chamber of Commerce, and companies including Comcast, Disney, and Warner Bros., say the rule creates operational challenges and have legally contested the rule, arguing the FTC lacks statutory authority.
What’s Next?
- July 14, 2025: Full enforcement begins unless courts issue a stay or amend the rule.
- Eighth Circuit decision: A key ruling expected soon, which could uphold, revise, or eliminate the rule.
- Potential changes: FTC officials have signaled openness to tweaks post-implementation.
- State laws: Meanwhile, some states already enforce their own “easy cancel” or auto‑renewal laws, independent of FTC rules.
What Consumers & Businesses Should Do
| For Consumers | For Businesses |
|---|---|
| Continue tracking subscriptions and cancellation avenues | Audit all auto-renewal processes and cancellation flows |
| Report deceptive or difficult charges to the FTC | Prepare for compliance by July 14, including consent mechanisms |
| Stay informed of rule enforcement and state laws | Monitor court developments and FTC updates |
Final Take
The FTC’s delay highlights the mid-course tension between protecting consumers and managing regulatory impact on businesses. While the July deadline is firm, the outcome will likely depend on legal rulings and potential rule adjustments. For now, the push for a simpler cancellation process is on hold, but far from dead.
