FTC delays new subscription cancellation rule to July

FTC delays new subscription cancellation rule to July is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• The rule will require companies to make cancellation as easy as signing up
• FTC says delay gives businesses more time to meet the updated requirements

What happened: FTC postpones rule enforcement by 60 days

The U.S. Federal Trade Commission (FTC) has delayed enforcement of its “click-to-cancel” rule until 14 July 2025. The rule was originally due to take effect on 14 May but the agency granted companies a 60-day extension last week.

This rule is part of the FTC’s update to its 1973 Negative Option Rule, which targets subscription services and recurring billing. The update requires companies to offer cancellation options that are just as simple as their sign-up processes. For example, if a user subscribes online in three steps, they must also be able to cancel in three steps on the same platform.

Also read: FTC report: 89% of smart devices lack information on update duration
Also read: FTC targets Microsoft: Cloud monopoly in the spotlight

Why it’s important

The FTC received thousands of complaints from users struggling to cancel subscriptions. Many said companies made the process deliberately difficult. Some used so-called “dark patterns”, such as hiding cancellation options or forcing users to call customer service.

Although the FTC granted more time, it warned that enforcement will begin in mid-July. Businesses should act now to update their systems. Delaying changes could lead to legal risks, customer backlash, and financial penalties. The rule also sends a strong message: companies must stop using design tricks to trap users in unwanted services.