Trying to Ditch a Subscription? Sorry, FTC Just Punted ‘Click to Cancel’ Enforcement

Trying to Ditch a Subscription? Sorry, FTC Just Punted ‘Click to Cancel’ Enforcement

The Federal Trade Commission (FTC) has delayed the enforcement of new rules that would make it easier for consumers to cancel their unwanted subscriptions.

This “click to cancel” rule was finalized in October 2024 under the Biden administration and was originally set to take effect on May 14. However, that’s now been delayed to July 14.

The rule will require sellers to make it as easy for consumers to cancel their enrollment as it is to sign up. So, if you signed up for something online, you shouldn’t have to call customer service to cancel a subscription. Meanwhile, if a business is offering phone cancellation, it won’t be able to charge extra for that service, and it will be forced to answer the phone or take a message during normal business hours.

The majority of the new rule targets a business practice known as “negative option programs,” which is when a business continues to charge you full price because you failed to take action on your subscription. For example, when your “free trial” of a service expires. 

In its official announcement, the FTC says the delay is to “ensure ample time for companies to conform their conduct to the Rule,” with the agency citing the “complexity of compliance.”

Recommended by Our Editors

That complexity includes a lawsuit from the Internet & Television Association (NCTA), a trade group representing some of America’s largest telecom and internet firms, including Charter Communications, Comcast, Cox Communications, Disney Entertainment, and Warner Bros. Discovery. Reuters reports that the suit argues that the “click to cancel” rule is an overstep of the FTC’s authority.

The FTC, now under the purview of the Trump administration, says it’s open to amending the rules. “If that enforcement experience exposes problems with the Rule, the Commission is open to amending the Rule to address any such problems.”

Get Our Best Stories!


Newsletter Icon


Your Daily Dose of Our Top Tech News

Sign up for our What’s New Now newsletter to receive the latest news, best new products, and expert advice from the editors of PCMag.

By clicking Sign Me Up, you confirm you are 16+ and agree to our Terms of Use and Privacy Policy.

Thanks for signing up!

Your subscription has been confirmed. Keep an eye on your inbox!

About Will McCurdy

Contributor

Will McCurdy

I’m a reporter covering weekend news. Before joining PCMag in 2024, I picked up bylines in BBC News, The Guardian, The Times of London, The Daily Beast, Vice, Slate, Fast Company, The Evening Standard, The i, TechRadar, and Decrypt Media.

I’ve been a PC gamer since you had to install games from multiple CD-ROMs by hand. As a reporter, I’m passionate about the intersection of tech and human lives. I’ve covered everything from crypto scandals to the art world, as well as conspiracy theories, UK politics, and Russia and foreign affairs.

Read Will’s full bio

Read the latest from Will McCurdy

Leave a Comment

Your email address will not be published. Required fields are marked *