FTC "Click-To-Cancel" Rule Coming Soon

The Federal Trade Commission's final "click-to-cancel" rule, which goes into effect on May 14, 2025, attempts to address the difficulties consumers may face when trying to cancel an automatically renewing subscription. The rule establishes new requirements for companies offering subscription-based products and services on an auto-renewal basis. The rule will now make the process more transparent and less confusing for customers seeking to withdraw from products and services.

The "click-to-cancel" rule applies across industries to transactions occurring online, in person, or over the phone, and to both business-to-business and business-to-consumer relationships.

Various challenges to the rule filed by industry and trade associations, private companies, and the Chamber of Commerce, alleging that the rule is "arbitrary, capricious, and an abuse of discretion," have been consolidated into one petition that is currently under review by the Court of Appeals for the