FTC Finalizes “Click-to-Cancel” Rule to Make It Easier for Consumers to End Recurring Subscriptions and Memberships

On October 16, 2024, the Federal Trade Commission (FTC) announced its final “click-to-cancel” rule (also known as the negative option rule) that will require businesses to make it as easy for consumers to cancel their enrollment as it was to sign up. The rule’s blanket prohibition on deception will become effective on January 15, 2025, and the provisions related to the disclosure, consent, and cancellation of negative option features will be effective on May 14, 2025. The new rule marks the end of a multi-year FTC stakeholder engagement process that began in 2019.

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