Canceling Should Be Simple: What Happened to the FTC’s Click-to-Cancel Rule?
The Federal Trade Commission's “click-to-cancel” rule was designed to make canceling a subscription as easy as signing up. It would also require companies to explain important terms before charging customers, obtain their consent for recurring charges, and provide a simple way to cancel. The FTC announced the final rule in October 2024.
However, the rule is not currently in effect. On July 8, 2025, the Eighth Circuit Court of Appeals vacated the rule, finding that the FTC had failed to follow a required step in the rule making process. In February 2026, the FTC restored the older version of its Negative Option Rule. As a result, the FTC no longer has the broader cancellation requirements announced in 2024.
The FTC is now considering its next steps. In March 2026, it invited the public to comment on whether the rule should be updated and how it could address unfair subscription practices. The FTC continues to receive complaints about recurring charges and difficult cancellation processes. Any future changes could affect how subscription services manage sign-ups, disclose billing information, and handle cancellations.
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