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FTC Click-to-Cancel Rule (Vacated)

The FTC Click-to-Cancel Rule was a 2024 federal rule that would have made subscriptions, including business ones, as easy to cancel as to start. A federal appeals court vacated it in July 2025, and as of October 2026 the FTC is gathering comments on a possible new rule.

What is the FTC Click-to-Cancel Rule?

The Click-to-Cancel Rule was the Federal Trade Commission's 2024 update to its Negative Option Rule. A negative option is any deal where doing nothing counts as agreeing, such as a subscription that renews unless you cancel. The rule would have required clear terms, real consent and a cancel method as simple as signing up.

It never took effect. Here is what happened, as of October 2026:

  1. October 16, 2024: the FTC announced the final rule. The FTC took the position that it also covered business-to-business deals.
  2. July 8, 2025: the Eighth Circuit Court of Appeals vacated the whole rule in Custom Communications, Inc. v. FTC, because the FTC skipped a required preliminary regulatory analysis.
  3. March 11, 2026: the FTC asked for public comment on whether and how to amend the Negative Option Rule, including whether to reuse parts of the vacated rule. Comments were due April 13, 2026, per Jones Day.
  4. September 2026: the FTC had not announced a replacement rule or timetable, per its rulemaking page.

One question in the 2026 request matters to SaaS buyers. The FTC asked whether business-to-business deals between sophisticated companies should be exempt, per the FTC's March 2026 notice. A new rule may not cover your company's purchases at all.

Why it matters to you

No federal cancel rule protects your business purchases as of October 2026. The original 1973 Negative Option Rule still applies, but it covers only prenotification plans, a narrow type of negative option, per Jones Day. The Restore Online Shoppers' Confidence Act (ROSCA) still requires clear disclosure, express informed consent and a simple way to stop recurring charges, but it protects consumers buying online.

Your contract decides. For business software, the cancel and renewal terms in your agreement do the work. See auto-renewal clause and state automatic renewal laws, since only a few state laws reach business contracts.

You may be the seller. If you sell subscriptions to consumers, ROSCA and state laws apply to you now.

What to check

  • How each vendor lets you cancel: a button, an email, or a written notice by a deadline.
  • The non-renewal notice period and whether fees are refundable after renewal.
  • Whether a free trial converts to a paid plan automatically. See free trial auto-conversion.
  • Whether the vendor changed its cancellation policy since you signed.

How Venpo helps

Venpo watches your vendors' terms, billing terms and cancellation and refund pages and emails you a plain-English alert when renewal or cancel language changes. The Fine Print Scan also answers, for each vendor, whether it can raise prices.

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Frequently asked questions

Is the FTC click-to-cancel rule in effect?

No. A federal appeals court vacated it in July 2025 before it took effect. As of October 2026, the FTC has asked for comments on a possible new rule but has not adopted one.

Did the click-to-cancel rule apply to B2B subscriptions?

The FTC took the position that the vacated rule covered business-to-business deals. In its 2026 request for comments, the FTC asked whether deals between sophisticated businesses should be exempt from any new rule.

Related terms

Laws and Regulations State Automatic Renewal Laws State automatic renewal laws set rules for contracts and subscriptions that renew on their own, such as clear disclosure, consent and reminders. Many protect consumers only; a few reach business contracts, so do not assume one protects your company when a vendor renews. Renewals, Pricing and Billing Auto-Renewal Clause An auto-renewal clause makes a subscription start a new term on its own when the current one ends, unless you cancel before a set deadline. The new term often comes at the vendor's current price, not the price you paid. Renewals, Pricing and Billing Cancellation Policy A cancellation policy sets out how and when you can stop a SaaS subscription, how much notice you must give, through which channel, and what you still owe or lose afterward, such as unused fees and your data. Renewals, Pricing and Billing Free Trial Auto-Conversion Free trial auto-conversion is when a free trial turns into a paid subscription on its own at the end of the trial, unless you cancel first. The card or billing details you gave at signup are charged automatically. Renewals, Pricing and Billing Notice of Non-Renewal A notice of non-renewal is the message you send a vendor to say you will not renew when your current term ends. Contracts often require it a set number of days before the end date, and missing that deadline can lock you into another term.

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