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ARTICLE · 03 DECEMBER 2024

Renewal Revolution: Compliance With FTC's "Click To Cancel" Rule

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On October 16, 2024, the Federal Trade Commission (FTC) issued a new rule, referred to as the "Click to Cancel" rule, which is intended to make it easier for consumers to cancel recurring subscriptions and memberships.

United StatesConsumer Protection
Serene W. Ateek
Serene W. Ateek
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On October 16, 2024, the Federal Trade Commission (FTC) issued a new rule, referred to as the "Click to Cancel" rule, which is intended to make it easier for consumers to cancel recurring subscriptions and memberships.1

Automatic renewal programs dominate a lot of our world today. Most operate using a negative option program, which means a consumer's failure to take action, such as canceling or opting out, is interpreted as consent to continue a service or subscription. While the process negative option/auto renewal process has historically been popular for gym memberships, magazines and entertainment services, it is now being used across a variety of consumer relationships that rely upon a subscription based model, e.g., lifestyle products (e.g., FabFitFun), meal deliveries (e.g., Factor), clothing (e.g., Stitch Fix), and even chiropractic services (e.g., The Joint Chiropractor).

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