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Home›Learn›FTC Click-to-Cancel Rule
federal law

FTC Click-to-Cancel Rule

Federal regulation requiring businesses to make cancellation as easy as signing up.

📜 FTC Rule on Negative Option Marketing (16 CFR Part 425)📅 Since 2024
🇺🇸 United States

📖 What It Means

The FTC Click-to-Cancel Rule (effective 2024) is a federal regulation that requires businesses to make subscription cancellation as simple and straightforward as the initial signup process. If you signed up online, you must be able to cancel online — no phone calls, no visiting a physical location, no navigating through multiple retention screens.

✅ Key Points

  • 1Cancellation must be as easy as signup — same number of steps
  • 2Companies cannot force phone calls if you signed up online
  • 3Applies to all recurring subscriptions in the United States
  • 4Violations can result in FTC enforcement action and fines
  • 5Companies must clearly disclose all terms before charging

💡 How to Use This

When a company makes you jump through hoops to cancel, cite the FTC Click-to-Cancel Rule in your dispute letter. Mention that you will file an FTC complaint if they do not process your cancellation immediately.

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⚖️ Legal Citation

FTC Rule on Negative Option Marketing (16 CFR Part 425)

Use this citation in your dispute letters for legal weight.

🔗 Related Terms

ROSCA (Restore Online Shoppers' Confidence Act)

Federal law requiring clear disclosure before charging for online subscriptions.

Negative Option Marketing

Marketing approach where silence or inaction is treated as agreement to be charged.

Automatic Renewal Laws

State and federal laws regulating how companies handle subscription auto-renewals.

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