Your Right to Cancel Subscriptions Just Got Stronger
What You Need to Know About the FTC’s New Rule
Effective July 14, 2025, the Federal Trade Commission (FTC) will begin enforcing a major update to consumer protection laws aimed at eliminating deceptive online subscriptions and making it easier for you to cancel recurring charges. Known as the Click-to-Cancel Rule, this federal regulation is a long-overdue fix for the frustration many people face when trying to cancel unwanted subscriptions. From streaming services to meal kits to monthly product boxes.
If you’ve ever been stuck paying for a service you didn’t mean to keep, this rule was designed to protect you.
What Is the FTC’s Click-to-Cancel Rule?
The Negative Option Rule, first introduced in 1973, was updated in October 2024 to address modern digital subscription models. The new version applies to any business offering automatic renewals, free trials that convert into paid plans, or continuity programs with recurring shipments or charges.
These changes will be enforced starting July 14, 2025, a delay from the original May date that gives businesses time to get compliant.
Key Protections for Consumers
The rule adds four essential requirements to protect your rights:
- No More Sneaky Charges
- Companies cannot mislead you about pricing, trial periods, cancellation terms, or what the subscription entails.
- You Must Be Clearly Informed
- Before you’re ever charged, businesses must clearly disclose the cost, billing frequency, and how to cancel, right before they ask for your payment info.
- You Must Give Clear Consent
- You can no longer be tricked into a subscription with pre-checked boxes or vague consent. You must actively agree to each term in a separate, clear way.
- Cancellation Must Be Easy
- If you can sign up online, you must be able to cancel online just as easily—think one click, not a 10-step process or a phone call that puts you on hold.
How Are Consumers in Each State Affected?
While the FTC’s rule is federal, state laws still apply, and many states go further to protect consumers:
California
- Automatic Renewal Law (July 1, 2025): Requires annual reminders of renewals and prohibits manipulative “save offers” during cancellation.
- Consumers in CA may also be eligible for statutory damages even if they didn’t suffer monetary loss.
Minnesota
- Renewal Law (Jan 1, 2025): Requires clear notice before each renewal, especially for subscriptions longer than 12 months.
New York, Illinois, and Others
- Several states already require clear disclosure and cancellation terms. Others are expected to adopt similar annual reminder provisions soon.
Why This Matters
Your rights as a consumer may vary by state, especially if state laws provide stronger protections than the federal rule. The FTC rule sets a baseline, but your state may entitle you to additional notifications, refund rights, or penalties against the business.
If you’re unsure whether your rights have been violated, contact a consumer protection attorney to review your case.
What Happens If Companies Don’t Follow the Law?
If a business fails to comply:
- FTC can fine them up to $53,088 per violation, even per customer.
- The FTC may sue for injunctions, consumer refunds, or public penalties.
- Class action lawsuits are increasingly common in this space, particularly when cancellation is made difficult or unclear.
- Businesses can also face state-level enforcement from the Attorneys General, depending on your location.
Bottom line: If you’re stuck in a subscription and the cancellation process isn’t clear, quick, or fair, that’s illegal.
What This Means for You
As a consumer, you now have:
- Stronger rights to understand what you’re signing up for.
- More power to cancel subscriptions without jumping through hoops.
- Legal recourse if you’ve been tricked, charged unfairly, or blocked from canceling.
And importantly, businesses have no excuse. Whether you’re in California, Florida, Minnesota, or any other state, companies must meet federal standards, or stronger local ones, by July 14, 2025.
How Our Firm Can Help
At Audet & Partners, LLP, we actively monitor FTC enforcement and state law changes nationwide. If you believe a business violated your rights under the new Click-to-Cancel Rule or a state-level renewal law, we can:
- Help you demand a refund
- Report the violation to federal or state agencies
- Evaluate your eligibility for joining or starting a consumer class action
