No More Fine Print: Bill Locks FTC's 'Click to Cancel' Rules into Permanent Federal Law

The “Click to Cancel Consumer Protection Act of 2025” has a pretty straightforward goal in its first section: it’s taking the Federal Trade Commission’s (FTC) existing rules on subscription services and making them permanent federal law. This isn't about creating new regulations right now; it’s about taking the rules the FTC already uses—specifically, the “negative option” rule (Part 425 of Title 16 of the Code of Federal Regulations)—and elevating them from agency regulations to actual statute. Think of it like taking a company’s internal policy and stamping it with the full authority of Congress. This means the rules governing how companies sign you up for and, more importantly, how they let you cancel subscriptions, are now locked in with the full force of law, making them much harder to undo or water down later.

The End of Subscription Sneak Attacks

What is this “negative option” rule, and why should you care? It’s the rule that governs all those auto-renewing subscriptions—from streaming services to meal kits to software licenses—where you’re charged automatically unless you actively cancel. The rule requires companies to clearly disclose all the key terms (like the price, the renewal date, and how to cancel) before you sign up. More critically for consumers, it dictates that if a company makes it easy to sign up, it has to make it just as easy to cancel. If you can sign up online in three clicks, they can’t make you call a poorly staffed 1-800 number during business hours to quit the service. For the average person juggling five different streaming services and a gym membership, this codification is a win for stability and predictability. It ensures that the current protections against unwanted recurring charges aren't just an agency policy that could be easily changed, but a concrete part of federal law.

What This Means for Business and Consumers

For consumers, the benefit is clear: stronger, more permanent protection against subscription traps. If a company violates these rules—say, by making the cancellation process intentionally confusing or hidden—the FTC now has the backing of federal statute, not just its own regulatory power, to go after them. This could mean more stability in enforcement, which is good news for anyone who has struggled to cancel a free trial before it automatically converted into a paid subscription. For businesses that rely on the subscription model, especially those that have played fast and loose with cancellation procedures, this bill confirms that the FTC’s existing standards are here to stay. It sets a clear, high bar for transparency and fairness in the digital economy. While it doesn't introduce immediate new costs or requirements, it solidifies the legal risk for non-compliant businesses and ensures that the rules of the road for auto-renewal are now federal law, section by section.