FTC's Click To Cancel Rule

If your business offers subscriptions or memberships that automatically renew, the Federal Trade Commission (FTC) has new rules you will soon need to follow. The FTC's Negative Option Rule, also known as the "Click to Cancel" rule or the Rule, requires companies to make it easier for their customers to unsubscribe from auto renew paid products. The Rule was announced on October 16, 2024, and will go into effect on May 14, 2025¹.

The Rule applies to "negative option–based products," which are basically any products that automatically charge a consumer until they opt out – essentially, auto renew paid subscriptions or other recurring payment services, including free-to-paid trials. Negative option features are contract provisions (i.e. online terms of service) where silence or inaction from the customer results in a charge or other acceptance of an offer.