Click to Cancel - FTC’s New Rule Simplifies Subscription Cancellations

📖This article originally appeared in the 2025 Spring edition of Impact magazine.

The Federal Trade Commission (FTC) issued a new rule (89 Fed. Reg. 90476; 16 C.F.R. Part 425) governing negative option features, like subscription or membership agreements with automatic renewal and recurring payment options. The rule, nicknamed “click-to-cancel,” requires sellers to clearly and conspicuously disclose the material terms of any negative option plan for the sale of goods or services before consumers subscribe.

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