Canceling subscriptions that automatically renew will be easier following a new click-to-cancel rule the Federal Trade Commission finalized Wednesday.

Taking effect in about six months, the new requirement will apply to so-called “negative option programs” consumers are given for free and then charged for, unless they specifically reject the offer.

What You Need To Know

  • The Federal Trade Commission finalized its click-to-cancel rule Wednesday

  • The new requirement will apply to so-called “negative option programs” consumers are given for free and then charged for, unless they specifically reject the offer

  • Click-to-cancel takes effect in 180 days

  • The new rule will require sellers to provide information about their programs before getting customers' billing information and charging them

“Too often, businesses make people jump through endless hoops just to cancel a subscription,” FTC Chair Lina M. Khan said in a statement. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”

The click-to-cancel rule will apply to nearly all negative option programs, though the most common types are for book and record clubs and mail-order companies. The FTC will require the sellers to provide information about their programs before getting customers’ billing information and charging them. It will also require them to get a customer’s informed consent before being charged.

The FTC said it is currently reviewing the 1973 Negative Option Rule to update it for the digital era, which has made easier for companies to sign up customers for services and products. The agency said it has been receiving increasing numbers of complaints about negative option programs for the past five years. In 2021, it received 42 complaints about the practice every day. By 2024, daily consumer complaints had increased to 70.