Archive — US — techcrunch
FTC delays enforcement of click-to-cancel rule
The FTC has voted to delay enforcement of the Negative Option Rule, or 'click-to-cancel' rule, designed to simplify subscription cancellations for consumers. Initially set to enforce on May 14, and then postponed to July 14, this delay reflects the FTC's assessment of compliance complexities. The rule aims to ensure cancellation processes are as simple as sign-up procedures.
Key points
- The FTC voted 3-0 to delay enforcement of the Negative Option Rule.
- The rule requires businesses to make canceling subscriptions as easy as signing up.
- Originally proposed in 2023, the rule's enforcement was first set for January 19 but was later delayed.
- The deadline was postponed from May 14 to July 14 after considering compliance burdens.
- Companies must provide cancellation information before collecting payment details.
Why it matters
- Delays in enforcing consumer protection regulations have been common; similar delays in tech regulations have occurred in the past.
- The trend of enhancing consumer rights in the subscription economy is growing, with current consumer demand for transparency.
- As of 2025, industries are expected to adopt stricter compliance protocols in line with consumer protection trends.
The FTC's delay in enforcing the click-to-cancel rule shows its commitment to ensuring that compliance is achievable for businesses while promoting consumer rights, reflecting a significant shift toward greater transparency in the subscription-based economy.