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ARTICLE · 22 OCTOBER 2024

FTC Finalizes 'Click To Cancel' Rule

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On October 16, the FTC announced that it has finalized its "click to cancel" rule, that will require sellers to make it much easier for consumers to cancel subscriptions.

United StatesConsumer Protection
A.J. Dhaliwal
A.J. Dhaliwal
Snehal Desai
Snehal Desai
Maxwell Earp-Thomas
Maxwell Earp-Thomas
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On October 16, the FTC announced that it has finalized its "click to cancel" rule, that will require sellers to make it much easier for consumers to cancel subscriptions. The final rule is part of the FTC's ongoing review of its 1973 Negative Option Rule, which the agency is modernizing to combat unfair or deceptive practices related to subscriptions, memberships, and other recurring-payment programs.

The Commission's approval of the 230-page rule follows its initial March 2023 announcement of a notice of proposed rulemaking for 'click to cancel.' After reviewing public comments, the Commission voted to approve the final rule (along party lines) with several modifications. Notably, it removes the requirement for sellers to provide annual reminders about the negative option feature of subscriptions. It also eliminates the prohibition on sellers offering plan modifications or reasons to maintain the current subscription to consumers attempting

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