Click-to-cancel: Difference between revisions

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==How it works==

The rule prohibits the following:<ref>{{Cite web |date=2024 |title=The FTC’s “Click to Cancel” Rule |url=https://www.ftc.gov/system/files/ftc_gov/pdf/NegOptions-1page-Oct2024-v2.pdf |website=Federal Trade Commission |url-status=live |archive-url=http://web.archive.org/web/20251122050657/https://www.ftc.gov/system/files/ftc_gov/pdf/NegOptions-1page-Oct2024-v2.pdf |archive-date=22 Nov 2025}}</ref><ref name=":0">https://www.govinfo.gov/content/pkg/FR-2024-11-15/pdf/2024-25534.pdf</ref>

The rule prohibits the following:<ref>{{Cite web |date=2024 |title=The FTC’s “Click to Cancel” Rule |url=https://www.ftc.gov/system/files/ftc_gov/pdf/NegOptions-1page-Oct2024-v2.pdf |website=Federal Trade Commission |url-status=live |archive-url=http://web.archive.org/web/20251122050657/https://www.ftc.gov/system/files/ftc_gov/pdf/NegOptions-1page-Oct2024-v2.pdf |archive-date=22 Nov 2025}}</ref><ref name=":0">https://www.govinfo.gov/content/pkg/FR-2024-11-15/pdf/2024-25534.pdf ([http://web.archive.org/web/20251124053133/https://www.govinfo.gov/content/pkg/FR-2024-11-15/pdf/2024-25534.pdf Archived])</ref>

*to misrepresent any material fact made while marketing using a negative option feature

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A "negative-option feature" is defined by the FTC as "a provision in an offer or agreement to sell or provide any goods or services 'under which the customer’s silence or failure to take an affirmative action to reject goods or services or to cancel the agreement is interpreted by the seller as acceptance of the offer'".<ref name=":0" /> In other words, it is a feature of a service, where once a subscription is initiated, the customer will continue to be billed until they actively cancel the subscription.

The click-to-cancel rule is not limited to electronic services, as the name might suggest. It includes, but is not limited to "Interactive Electronic Media, telephone, print, and in-person transactions."<ref>https://www.federalregister.gov/documents/2024/11/15/2024-25534/negative-option-rule#sectno-citation-425.1 ([http://web.archive.org/web/20250515052212/https://www.federalregister.gov/documents/2024/11/15/2024-25534/negative-option-rule Archived])</ref> The cancellation mechanism must be "at least as simple as consent".<ref>https://www.federalregister.gov/d/2024-25534/p-1164</ref> The customer may not be required to interact with a representative, whether a real human or a chat bot, if the customer was not required to do so when they signed up for the service.<ref>https://www.federalregister.gov/d/2024-25534/p-1166</ref> For services which were signed up for in-person, the seller must allow cancellation online or over the phone.<ref>https://www.federalregister.gov/d/2024-25534/p-1168</ref>

The click-to-cancel rule is not limited to electronic services, as the name might suggest. It includes, but is not limited to "Interactive Electronic Media, telephone, print, and in-person transactions."<ref>https://www.federalregister.gov/documents/2024/11/15/2024-25534/negative-option-rule#sectno-citation-425.1 ([http://web.archive.org/web/20250515052212/https://www.federalregister.gov/documents/2024/11/15/2024-25534/negative-option-rule Archived])</ref> The cancellation mechanism must be "at least as simple as consent".<ref>https://www.federalregister.gov/d/2024-25534/p-1164 ([https://web.archive.org/web/20260223034631/https://unblock.federalregister.gov/ Archived])</ref> The customer may not be required to interact with a representative, whether a real human or a chat bot, if the customer was not required to do so when they signed up for the service.<ref>https://www.federalregister.gov/d/2024-25534/p-1166 ([https://web.archive.org/web/20260223034652/https://unblock.federalregister.gov/ Archived])</ref> For services which were signed up for in-person, the seller must allow cancellation online or over the phone.<ref>https://www.federalregister.gov/d/2024-25534/p-1168 ([https://web.archive.org/web/20260223034713/https://unblock.federalregister.gov/ Archived])</ref>

==Examples of abuse==

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"Free-to-pay" is a technical term for free trials with a negative-option feature.<ref>https://www.ftc.gov/system/files/documents/public_statements/1598063/negative_option_policy_statement-10-22-2021-tobureau.pdf ([http://web.archive.org/web/20251209002749/https://www.ftc.gov/system/files/documents/public_statements/1598063/negative_option_policy_statement-10-22-2021-tobureau.pdf Archived])</ref> In many cases, rather than providing a free trial with no strings attached, and only billing the customer if they decide to sign up, the vendor collects payment information as a prerequisite of the free trial, and automatically bills the customer if they fail to affirmatively cancel the trial (a negative-option feature).

While it does not outright prohibit this practice, the click-to-cancel rule partially alleviates these issues by requiring clear disclosures and consent. According to state AGs, "advertisements for free-to-pay conversion offers often lure consumers by promising a 'free' benefit while failing to clearly and conspicuously disclose future payment obligations".<ref>https://www.federalregister.gov/d/2023-07035/p-83</ref> The FTC also states that:<ref>https://www.federalregister.gov/d/2023-07035/p-87 ([https://web.archive.org/web/20260216014934/https://unblock.federalregister.gov/ Archived])</ref><blockquote>Other studies reveal similar trends. TINA noted the FBI's internet Crime Complaint Center recorded a rise in complaints about free trial offers, growing from 1,738 in 2015 to 2,486 in 2017, with losses totaling more than $15 million. Similarly, a 2019 Bankrate.com survey cited by NCL found that 59% of consumers have signed up for “free trials” that automatically converted into a recurring payment obligation “against their will.” In NCL's view, these data point to “a troubling, and costly problem for American consumers.” </blockquote>

While it does not outright prohibit this practice, the click-to-cancel rule partially alleviates these issues by requiring clear disclosures and consent. According to state AGs, "advertisements for free-to-pay conversion offers often lure consumers by promising a 'free' benefit while failing to clearly and conspicuously disclose future payment obligations".<ref>https://www.federalregister.gov/d/2023-07035/p-83 ([https://web.archive.org/web/20260223034831/https://unblock.federalregister.gov/ Archived])</ref> The FTC also states that:<ref>https://www.federalregister.gov/d/2023-07035/p-87 ([https://web.archive.org/web/20260216014934/https://unblock.federalregister.gov/ Archived])</ref><blockquote>Other studies reveal similar trends. TINA noted the FBI's internet Crime Complaint Center recorded a rise in complaints about free trial offers, growing from 1,738 in 2015 to 2,486 in 2017, with losses totaling more than $15 million. Similarly, a 2019 Bankrate.com survey cited by NCL found that 59% of consumers have signed up for “free trials” that automatically converted into a recurring payment obligation “against their will.” In NCL's view, these data point to “a troubling, and costly problem for American consumers.” </blockquote>

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 ==How it works==
-The rule prohibits the following:<ref>{{Cite web |date=2024 |title=The FTC’s “Click to Cancel” Rule |url=https://www.ftc.gov/system/files/ftc_gov/pdf/NegOptions-1page-Oct2024-v2.pdf |website=Federal Trade Commission |url-status=live |archive-url=http://web.archive.org/web/20251122050657/https://www.ftc.gov/system/files/ftc_gov/pdf/NegOptions-1page-Oct2024-v2.pdf |archive-date=22 Nov 2025}}</ref><ref name=":0">https://www.govinfo.gov/content/pkg/FR-2024-11-15/pdf/2024-25534.pdf</ref>
+The rule prohibits the following:<ref>{{Cite web |date=2024 |title=The FTC’s “Click to Cancel” Rule |url=https://www.ftc.gov/system/files/ftc_gov/pdf/NegOptions-1page-Oct2024-v2.pdf |website=Federal Trade Commission |url-status=live |archive-url=http://web.archive.org/web/20251122050657/https://www.ftc.gov/system/files/ftc_gov/pdf/NegOptions-1page-Oct2024-v2.pdf |archive-date=22 Nov 2025}}</ref><ref name=":0">https://www.govinfo.gov/content/pkg/FR-2024-11-15/pdf/2024-25534.pdf ([http://web.archive.org/web/20251124053133/https://www.govinfo.gov/content/pkg/FR-2024-11-15/pdf/2024-25534.pdf Archived])</ref>
 *to misrepresent any material fact made while marketing using a negative option feature
@@ Line 11: / Line 11: @@
 A "negative-option feature" is defined by the FTC as "a provision in an offer or agreement to sell or provide any goods or services 'under which the customer’s silence or failure to take an affirmative action to reject goods or services or to cancel the agreement is interpreted by the seller as acceptance of the offer'".<ref name=":0" /> In other words, it is a feature of a service, where once a subscription is initiated, the customer will continue to be billed until they actively cancel the subscription.
-The click-to-cancel rule is not limited to electronic services, as the name might suggest. It includes, but is not limited to "Interactive Electronic Media, telephone, print, and in-person transactions."<ref>https://www.federalregister.gov/documents/2024/11/15/2024-25534/negative-option-rule#sectno-citation-425.1 ([http://web.archive.org/web/20250515052212/https://www.federalregister.gov/documents/2024/11/15/2024-25534/negative-option-rule Archived])</ref> The cancellation mechanism must be "at least as simple as consent".<ref>https://www.federalregister.gov/d/2024-25534/p-1164</ref> The customer may not be required to interact with a representative, whether a real human or a chat bot, if the customer was not required to do so when they signed up for the service.<ref>https://www.federalregister.gov/d/2024-25534/p-1166</ref> For services which were signed up for in-person, the seller must allow cancellation online or over the phone.<ref>https://www.federalregister.gov/d/2024-25534/p-1168</ref>
+The click-to-cancel rule is not limited to electronic services, as the name might suggest. It includes, but is not limited to "Interactive Electronic Media, telephone, print, and in-person transactions."<ref>https://www.federalregister.gov/documents/2024/11/15/2024-25534/negative-option-rule#sectno-citation-425.1 ([http://web.archive.org/web/20250515052212/https://www.federalregister.gov/documents/2024/11/15/2024-25534/negative-option-rule Archived])</ref> The cancellation mechanism must be "at least as simple as consent".<ref>https://www.federalregister.gov/d/2024-25534/p-1164 ([https://web.archive.org/web/20260223034631/https://unblock.federalregister.gov/ Archived])</ref> The customer may not be required to interact with a representative, whether a real human or a chat bot, if the customer was not required to do so when they signed up for the service.<ref>https://www.federalregister.gov/d/2024-25534/p-1166 ([https://web.archive.org/web/20260223034652/https://unblock.federalregister.gov/ Archived])</ref> For services which were signed up for in-person, the seller must allow cancellation online or over the phone.<ref>https://www.federalregister.gov/d/2024-25534/p-1168 ([https://web.archive.org/web/20260223034713/https://unblock.federalregister.gov/ Archived])</ref>
 ==Examples of abuse==
@@ Line 29: / Line 29: @@
 "Free-to-pay" is a technical term for free trials with a negative-option feature.<ref>https://www.ftc.gov/system/files/documents/public_statements/1598063/negative_option_policy_statement-10-22-2021-tobureau.pdf ([http://web.archive.org/web/20251209002749/https://www.ftc.gov/system/files/documents/public_statements/1598063/negative_option_policy_statement-10-22-2021-tobureau.pdf Archived])</ref> In many cases, rather than providing a free trial with no strings attached, and only billing the customer if they decide to sign up, the vendor collects payment information as a prerequisite of the free trial, and automatically bills the customer if they fail to affirmatively cancel the trial (a negative-option feature).
-While it does not outright prohibit this practice, the click-to-cancel rule partially alleviates these issues by requiring clear disclosures and consent. According to state AGs, "advertisements for free-to-pay conversion offers often lure consumers by promising a 'free' benefit while failing to clearly and conspicuously disclose future payment obligations".<ref>https://www.federalregister.gov/d/2023-07035/p-83</ref> The FTC also states that:<ref>https://www.federalregister.gov/d/2023-07035/p-87 ([https://web.archive.org/web/20260216014934/https://unblock.federalregister.gov/ Archived])</ref><blockquote>Other studies reveal similar trends. TINA noted the FBI's internet Crime Complaint Center recorded a rise in complaints about free trial offers, growing from 1,738 in 2015 to 2,486 in 2017, with losses totaling more than $15 million. Similarly, a 2019 Bankrate.com survey cited by NCL found that 59% of consumers have signed up for “free trials” that automatically converted into a recurring payment obligation “against their will.” In NCL's view, these data point to “a troubling, and costly problem for American consumers.” </blockquote>
+While it does not outright prohibit this practice, the click-to-cancel rule partially alleviates these issues by requiring clear disclosures and consent. According to state AGs, "advertisements for free-to-pay conversion offers often lure consumers by promising a 'free' benefit while failing to clearly and conspicuously disclose future payment obligations".<ref>https://www.federalregister.gov/d/2023-07035/p-83 ([https://web.archive.org/web/20260223034831/https://unblock.federalregister.gov/ Archived])</ref> The FTC also states that:<ref>https://www.federalregister.gov/d/2023-07035/p-87 ([https://web.archive.org/web/20260216014934/https://unblock.federalregister.gov/ Archived])</ref><blockquote>Other studies reveal similar trends. TINA noted the FBI's internet Crime Complaint Center recorded a rise in complaints about free trial offers, growing from 1,738 in 2015 to 2,486 in 2017, with losses totaling more than $15 million. Similarly, a 2019 Bankrate.com survey cited by NCL found that 59% of consumers have signed up for “free trials” that automatically converted into a recurring payment obligation “against their will.” In NCL's view, these data point to “a troubling, and costly problem for American consumers.” </blockquote>
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