The 'Click to Cancel Act' Makes Easy Subscription Cancellation a Federal Law, Backed by Full FTC Power

If you’ve ever spent 20 minutes clicking through confusing menus, talking to a chat bot named ‘Brenda,’ or calling a customer service line just to stop paying for a streaming service you forgot you had, this bill is for you.

The Click to Cancel Act of 2025 (Sec. 1) isn't creating a brand-new rule; it’s taking an existing Federal Trade Commission (FTC) policy—the one requiring companies to offer a simple “click-to-cancel” option for online subscriptions—and cementing it into permanent federal law (Sec. 2). Essentially, the bill takes the FTC’s Negative Option Rule, which aims to stop companies from trapping consumers in recurring payment schemes, and gives it the full, binding authority of Congress.

Finally Ending the Cancellation Gauntlet

For the busy person juggling work, family, and rising costs, the ability to quickly cut unnecessary expenses is crucial. This bill addresses the notorious “cancellation gauntlet”—where signing up is a single click, but canceling requires a quest. The key change here is that businesses must now provide a cancellation method that is at least as simple as the sign-up process. If you signed up online in two clicks, you should be able to cancel online in two clicks.

This isn't just a suggestion anymore. By codifying this rule, the bill ensures that every business offering an online subscription or recurring charge must comply nationwide. Think about that software subscription you use for work, the fitness app you signed up for during a moment of optimism, or the monthly delivery service. The law says they must now make it easy to quit, no matter where you live or what industry they are in.

Giving the FTC Real Teeth

What makes this Act truly effective is the enforcement mechanism. When the rule was just an FTC regulation, enforcement was sometimes slower. Now, the bill explicitly states that any violation of this easy-cancellation requirement will be treated as an unfair or deceptive business practice under the Federal Trade Commission Act (Sec. 2).

This means the FTC can deploy its full arsenal of tools and jurisdiction—including significant fines and legal action—against companies that try to hide the 'cancel' button. For consumers, this translates into real accountability. If a company still tries to make you call, email, or send a carrier pigeon to cancel, they are now violating federal law, and the FTC can hit them with the same penalties they use for other major consumer fraud cases.

The Real-World Impact on Your Wallet

This legislation is a win for consumer convenience and financial control. For the small business owner managing several software licenses, or the parent trying to trim household expenses, the ability to instantly stop a recurring charge means money back in their pocket right away, without wasting valuable time fighting with customer service. It removes the friction that companies relied on to keep collecting those small, forgotten monthly fees that add up fast. While businesses that rely on cancellation friction to boost retention might feel the pinch, the majority of consumers will benefit from clearer, fairer billing practices.