Click To Cancel – FTC Amends Negative Option Rule

In an October 16, 2024, press release, the Federal Trade Commission (FTC) announced its final Negative Option Rule, requiring businesses to make it as easy for consumers to cancel their enrollment in recurring subscriptions and memberships as it was to sign up for them. The amendments are part of the FTC's ongoing review of the 1973 Negative Option Rule, which the Commission is working to update to combat unfair or deceptive practices in a modern, digital economy.

The rulemaking process, launched in March 2023, resulted in more than 16,000 comments from consumers, federal and state government agencies, consumer groups, and trade associations. That process resulted in the final rule and a corresponding fact sheet. Most of the final rule's provisions go into effect 180 days after publication in the Federal Register. Here are some key takeaways for businesses to keep in mind: