The Federal Trade Commission (FTC) has decided to postpone the enforcement of the Negative Option Rule, commonly referred to as the ‘click-to-cancel’ rule. This regulation, initially proposed in 2023, mandates that companies allow customers to cancel subscriptions as easily as they signed up. It targets businesses offering both physical and digital subscriptions, ensuring that cancellation processes are not more complicated than sign-up procedures. The rule requires companies to provide clear cancellation information upfront. Originally set to take effect on January 19, with enforcement beginning May 14, the FTC has now extended the delay by an additional 60 days until July 14. In a statement, the FTC explained that the original timeline did not adequately consider the complexities of compliance. The commission voted unanimously to approve the delay. Despite the postponement, the FTC remains committed to enforcing the rule starting July 14, acknowledging the possibility of future amendments if issues arise during implementation.
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