Overview

• The FTC has postponed enforcement of the click-to-cancel provision of the Negative Option Rule from May 14 to July 14, 2025, after a unanimous vote on May 9.
• The rule, effective since January 19, 2025, mandates that subscription cancellations must be as simple as sign-ups to prevent deceptive business practices.
• The enforcement delay is intended to give businesses additional time to adjust their systems and comply with the rule’s requirements.
• Industry groups, including the U.S. Chamber of Commerce and the NCTA, have filed lawsuits challenging the rule, arguing it exceeds the FTC’s authority and imposes undue burdens.
• The regulation is part of broader consumer protection efforts under the Biden administration, targeting unfair recurring charges and deceptive auto-renewal practices.