FTC Extends “Click to Cancel” Negative Option Rule Deadline by 60 Days

FTC Extends “Click to Cancel” Negative Option Rule Deadline by 60 Days

The Federal Trade Commission (FTC) has extended the compliance deadline for certain provisions of the amended “Click to Cancel,” Negative Option Rule (“Rule”) by 60 days, extending the enforcement date from May 14, 2025, to July 14, 2025. This extension gives providers additional time to implement the changes required by the Rule’s disclosure, consent, and cancellation requirements. Companies offering non-common carrier services with subscription or recurring billing features should use this extended window to ensure their systems and processes fully comply with the Rule’s requirements.

While the prohibition against misrepresenting material facts in negative option marketing remains in effect, the following provisions have had their compliance deadlines extended:

1. Disclosure Requirements (§ 425.4): Clear and conspicuous disclosure of all material terms of transactions involving negative-option features
2. Consent Requirements (§ 425.5): Obtaining express informed consent to any negative-option feature before charging consumers
3. Cancellation Requirements (§ 425.6): Providing cancellation mechanisms that are at least as easy to use as the method consumers used to sign up

As discussed in depth during our previous Elert: JSI Explains the FTC’s “Click to Cancel” Negative Option Rule, JSI wants to remind providers that while traditional telecommunications services regulated as “telecommunications services” under Title II of the Communications Act generally fall outside the FTC’s authority, many providers also offer non-common carrier services that are subject to these requirements. Each service should be evaluated individually to determine whether it constitutes a common carrier activity exempt from the rule or a non-common carrier activity subject to the rule’s requirements.

JSI encourages all providers to use this additional time wisely. For assistance in determining how this Rule applies to your specific service offerings or to develop compliance strategies, please contact Brett Hallagan or John Kuykendall.