FTC Delays Enforcement of “Click-to-Cancel” Rule, Giving Businesses Extra Time to Comply

The Federal Trade Commission has pushed back the enforcement deadline for its controversial “click-to-cancel” rule, offering businesses a reprieve as they scramble to adapt their subscription cancellation processes to meet new federal standards.

The agency announced on Friday that it would delay enforcement of the rule until March 31, 2026, extending the original compliance deadline by six months. The decision comes amid mounting pressure from businesses across various sectors that argued they needed more time to implement the technical changes required by the regulation.

“The additional time will help businesses make the necessary adjustments to their subscription and membership cancellation processes,” the FTC stated in its press release. The commission voted 3-2 along party lines to approve the extension, with the Democratic majority supporting the delay while maintaining that the rule itself remains essential for consumer protection.

The rule, formally known as the “Negative Option Rule,” requires businesses to make canceling subscriptions as easy as signing up for them. Companies must provide a simple cancellation mechanism—such as a prominent “cancel” button—in the same location where customers initially subscribed to the service.

“Too many companies make people jump through endless hoops just to cancel a subscription,” said FTC Chair Lina Khan when the rule was initially approved in March 2024, according to Reuters. The regulation aims to eliminate practices where consumers face lengthy phone calls, complicated online navigation, or hidden cancellation options when trying to end recurring payments.

Industry response to the extension has been largely positive. Many businesses had voiced concerns about the technical complexity of implementing the required changes, particularly for companies with multiple subscription products or complex billing systems.

The rule applies broadly across industries, affecting everything from streaming services and gym memberships to magazine subscriptions and food delivery programs. According to TechCrunch, the regulation “will force companies to provide a straightforward cancellation process that can be completed in the same number of steps as signing up.”

Despite the enforcement delay, the FTC emphasized that the rule itself will still go into effect on September 30, 2025, as originally planned. This creates a six-month grace period during which the agency will not bring enforcement actions against non-compliant businesses.

The commission’s two Republican members dissented from the majority decision, arguing that the rule itself is flawed and should be reconsidered entirely rather than simply delayed.

Consumer advocacy groups have expressed disappointment with the delay. “Every month this rule isn’t enforced means millions more consumers trapped in subscriptions they don’t want,” said a representative from a consumer rights organization, as reported by MSN.

The “click-to-cancel” rule represents one of the most significant consumer protection initiatives of the Biden administration’s FTC. The regulation aims to address what the commission describes as “a persistent source of consumer complaints” regarding difficult cancellation processes that often lead consumers to continue paying for unwanted services.

According to Startup News, businesses that fail to comply with the rule once enforcement begins could face civil penalties of up to $50,120 per violation, creating a strong financial incentive for companies to adapt their systems during the extended implementation period.

The delayed enforcement timeline gives businesses additional breathing room, but the FTC has made it clear that the underlying requirement—making cancellations as simple as sign-ups—remains a regulatory priority that companies must address in the coming months.