May 14, 2025 "Click to Cancel" Compliance Date is Quickly Approaching - Are You Ready?

The May 14, 2025 compliance deadline for key aspects of the Federal Trade Commission’s (FTC) “Click to Cancel” rule for auto-renewing subscriptions is quickly approaching. As previously discussed in detail, the rule, which applies to both B2B and B2C transactions, has four main components: (1) a prohibition against misrepresenting material facts relating to any term of auto-renewal; (2) clear and conspicuous disclosure of all material terms of an auto-renewing offer; (3) obtaining the express informed consent of a consumer to the auto-renewal feature, separately from any other portion of the transaction; and (4) provision of a simple mechanism for consumers to cancel any auto-renewing feature of a subscription.

While a challenge to the rule remains pending in the Eighth Circuit Court of Appeals, the court denied a request to stay the effectiveness of the rule while the litigation is pending. Accordingly, the FTC may move forward with enforcement, which could include civil penalties of up to $53,088 per violation.

Businesses are reminded that “Click to Cancel” does not supersede or alter state laws that are not inconsistent with the FTC’s rule. So, state requirements, which may include sending annual reminders of long-term subscriptions or the sending of detailed confirmations, will still apply.

Sellers should ensure they are in compliance with the updated FTC rules, along with any state-specific requirements, while continuing to monitor legal and regulatory developments.

For more information about Click to Cancel, contact an attorney in our Privacy, Data Protection, and Cybersecurity Practice Group.