The Federal Trade Commission recently voted to delay enforcement of the Negative Option Rule, also known as the “click-to-cancel” rule. This rule requires businesses to make canceling a subscription as easy as signing up. Originally proposed in 2023, the rule targets companies that make it difficult to cancel subscriptions, like streaming services and gym memberships.
Under this rule, businesses cannot make canceling subscriptions more complicated than signing up. The FTC requires companies to provide cancellation information before collecting payment details. Although the rule went into effect in January, enforcement was delayed until May 14, and now the FTC has extended the enforcement delay to July 14.
The FTC emphasized the need for compliance with the rule by July 14, but is also open to making amendments if issues arise during enforcement. Despite the delay, businesses must ensure compliance by the new deadline.