Click-to-Cancel: The FTC’s New Rule That’s Shaking Up Subscription Businesses

On May 14, 2025, the Federal Trade Commission (FTC) “Click-to-Cancel” rule will finally take effect, and let’s be honest—this is the regulation subscription-based businesses secretly feared. The rule requires businesses to comply with a new mandate: if signing up was easy, canceling must be just as simple. No more requiring customers to send a carrier pigeon to end their subscriptions.

For businesses that thrive on automatic renewals, free-to-paid trials, or recurring billing, this rule represents a major shake-up. Companies offering subscriptions—whether for digital services, physical goods, or memberships—must now ensure that their cancellation process mirrors their sign-up process. If customers signed up with one click, they should be able to cancel just as fast. No surprise hurdles or forced human interactions.

Beyond simplifying cancellations, the rule also requires businesses to be more upfront about their terms. Companies must clearly disclose recurring charges, cancellation deadlines, and the exact steps needed to avoid being billed forever. Plus, they need to obtain clear consumer consent—so no more pre-checked boxes hidden in the fine print. Businesses that fail to comply risk FTC enforcement actions, hefty fines, and an inevitable social media storm from frustrated consumers.

With the looming deadline, businesses should get their subscription models in order. Reviewing user experience, updating disclosure practices, and making the cancellation process as painless as possible won’t just keep companies compliant—it may also boost customer trust. Assuming there are no delays from the FTC, enforcement is imminent, so now is the time to ensure your subscription model doesn’t land you in hot water—or at the center of a viral customer rant on TikTok.