BALTIMORE, MD — Maryland Attorney General Anthony G. Brown issued a consumer alert ahead of the fast-approaching compliance deadline for the Federal Trade Commission’s (FTC) new “Click-to-Cancel” Rule, which is set to take full effect on May 14, 2025. The rule is designed to make it easier for consumers to cancel online subscriptions and memberships, putting an end to confusing and burdensome cancellation processes.
The rule, which officially went into effect on January 14, 2025, gave businesses a four-month grace period to update their systems and comply. Starting May 14, companies that do not provide a clear and simple online cancellation method will be in violation of federal law.
“In today’s digital marketplace, signing up for a product or service takes just a click, but cancelling often feels like a maze,” said Attorney General Brown. “The FTC’s Click-to-Cancel Rule is a long-overdue fix that puts power back in the hands of consumers.”
What the Click-to-Cancel Rule Requires
Under the new rule, if a business allows consumers to sign up for a subscription online, it must also offer a simple and straightforward online option to cancel—no phone calls, emails, or hard-to-find links required.
The Click-to-Cancel Rule strengthens the FTC’s existing Negative Option Rule, which already requires companies to clearly disclose the terms of subscription offers and get consumers’ informed consent before charging for auto-renewing services.
Key protections under the rule include:
- Equal ease to cancel: Cancelling must be as easy as signing up.
- Clear instructions: Companies must provide simple, easy-to-understand steps for cancellation.
- No extra hurdles: Businesses cannot require unnecessary steps, like calling customer service or answering surveys, to complete a cancellation online. A Step Toward Fairer Digital Practices
The update follows years of consumer complaints about misleading or predatory auto-renewal practices. In June 2023, Attorney General Brown supported reforms to the FTC’s rules to better protect consumers from being locked into services they no longer want or use.
“This rule is about fairness and transparency,” Brown said. “Consumers shouldn’t have to waste time and energy just to stop paying for something they no longer need.”
Consumers who want to learn more about the Click-to-Cancel Rule or see the official published version of the regulation can access it in the Federal Register under the FTC’s Negative Option Rule.
Anyone who believes a company is violating this new rule can report it directly to the FTC or the Maryland Office of the Attorney General.
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