On October 16, 2024, the Federal Trade Commission announced a final rule covering almost all negative-option programs across media. Most provisions take effect 180 days after publication in the Federal Register, not 180 days after the announcement. Subscription businesses therefore need the publication date before they can calculate the phase-in deadline. [S1]
The rule’s four stated duties are to avoid misrepresenting material facts, disclose material terms clearly before collecting billing information, obtain express informed consent before charging, and provide a simple cancellation mechanism that immediately halts charges. A useful internal review follows those same steps: marketing claims, pre-billing disclosures, consent, then cancellation. [S1]
Two measures in the earlier proposal did not survive in the final announcement. The proposal included annual reminders for certain recurring programs and required sellers to ask before making a retention pitch during cancellation. The FTC says the final rule dropped both provisions. Businesses comparing drafts should not treat those proposed measures as final requirements on the strength of this announcement. [S1][S2]
Operators can use the four duties as a review map for enrollment and cancellation, then watch for the Federal Register publication that starts the phase-in clock. The FTC’s announcement itself is not a dated compliance deadline. [S1]
Source documents
- Federal Trade Commission Announces Final ‘Click-to-Cancel’ Rule Making It Easier for Consumers to End Recurring Subscriptions and Membershipshttps://www.ftc.gov/news-events/news/press-releases/2024/10/federal-trade-commission-announces-final-click-cancel-rule-making-it-easier-consumers-end-recurring
- Federal Trade Commission Proposes Rule Provision Making it Easier for Consumers to ‘Click to Cancel’ Recurring Subscriptions and Membershipshttps://www.ftc.gov/news-events/news/press-releases/2023/03/federal-trade-commission-proposes-rule-provision-making-it-easier-consumers-click-cancel-recurring