FTC Extends Compliance Deadline for ‘Click-to-Cancel’ Rule to July 14, 2025

On May 9, 2025, the Federal Trade Commission (FTC) announced a 60-day extension for businesses to comply with recent amendments to the Negative Option Rule. The original compliance deadline of May 14, 2025, is now extended to July 14, 2025.

According to the FTC, the extension is intended to account for the “complexity of compliance” and “ensure ample time for companies to conform their conduct to the Rule.” See: FTC Commission Statement on Delay – Negative Option Rule (Matter No. P064202) (last accessed May 20, 2025).

Overview of the Negative Option Rule

The Negative Option Rule prohibits companies from misrepresenting material facts when marketing or selling any good or service that uses a negative option feature — a billing practice where a customer’s silence or failure to cancel is treated as consent to be charged. This practice is considered an unfair or deceptive act under Section 5 of the FTC Act.

Key Amendments to the Rule

The updated rule imposes several new obligations on businesses that offer subscriptions or recurring billing:

• Clear and Conspicuous Disclosures: Companies must clearly disclose all material terms of the transaction up front.
• Express Informed Consent: Businesses must obtain the consumer’s affirmative, informed consent to the negative option feature before charging them.
• Simple Cancellation: Companies must ensure that the cancellation process is as easy as the sign-up process, including for online subscriptions.

For more background and practical guidance, see our prior post on the Negative Option Rule or contact your primary RJO attorney. You can also reach out to our Retail Trade practice co-chair, shareholder Alecia Cotton (acotton@rjo.com), or senior associate Whitney Miner (wminer@rjo.com).