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!
Your Daily Dose of Our Top Tech News
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
