⚖️ FTC is delaying its enforcement of the new click-to-cancel rule

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FTC Delays Enforcement of “Click-to-Cancel” Rule, Giving Startups More Time to Prepare

The Federal Trade Commission (FTC) has postponed enforcement of its new “Negative Option Rule” — commonly known as the “click-to-cancel” rule — until July 14, 2025. The rule requires that businesses make subscription cancellations as simple as the sign-up process, especially for digital services. Initially set for phased enforcement starting in January and May, the FTC extended the deadline by 60 days, citing the complexity of compliance as a key factor. Despite political controversy at the commission, the FTC has made clear that enforcement will begin this summer.

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Why This Matters for Subscription-Based Startups

For startups offering digital subscriptions — from SaaS platforms to media and wellness apps — this rule is especially relevant. It bans dark patterns that trap users in difficult cancellation loops, and mandates clear, upfront disclosures before collecting payment info. If your users can subscribe with a couple of clicks, they must be able to cancel the same way — no phone calls, email requests, or “speak to a representative” hoops. Ignoring this rule could lead to legal exposure and loss of consumer trust.

Next Steps for Founders and Product Teams

Use this window to audit your sign-up and cancellation flows. Make sure cancellation options are accessible through the same channel as the subscription (e.g., online-to-online). Legal and product teams should also review terms of service, onboarding screens, and payment flows to ensure cancellation information is disclosed clearly and early. For startups competing with legacy platforms, compliance can be a differentiator — being user-friendly and regulator-friendly may build long-term loyalty and defensibility.

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