Click to Cancel Act of 2025
- Sponsor
- Rep. Sherman, Brad [D-CA-32]
- Committees
- Energy and Commerce Committee (primary)
- Last action
- Jul 29, 2025
Bottom line
The bill legally solidifies the FTC's "click-to-cancel" rule, aiming to make it easier for consumers to cancel subscriptions and negative option plans.
What it actually does
This bill, the "Click to Cancel Act of 2025," codifies into law a rule issued by the Federal Trade Commission (FTC) on November 15, 2024, known as the "Negative Option Rule" (89 Fed. Reg. 90476). By doing so, it grants this specific FTC rule the full force and effect of federal law, making violations enforceable as unfair or deceptive acts or practices under the Federal Trade Commission Act.
Proponents argue
Supporters argue that codifying the FTC's "Negative Option Rule" is crucial for consumer protection, ensuring that businesses cannot trap consumers in unwanted subscriptions or services through difficult cancellation processes. They contend that this bill provides a clear, nationwide standard, preventing companies from using dark patterns to retain customers, thereby empowering consumers and promoting fair market practices.
Opponents contend
Opponents might argue that codifying a specific FTC rule into law could limit the agency's flexibility to adapt regulations to evolving market practices or technological changes without congressional action. They might also contend that the rule itself could impose undue burdens on legitimate businesses, particularly smaller enterprises, by mandating specific cancellation mechanisms that increase operational costs or administrative complexity.
The bill is exceptionally short and straightforward, allowing for a quick and easy understanding of its core purpose.
Section 2(a)
Codification of FTC's Negative Option Rule
This section states that the Federal Trade Commission's "Negative Option Rule," which was issued on November 15, 2024, and published in the Federal Register (89 Fed. Reg. 90476), will now have the full force and effect of federal law. This means the rule, which generally requires businesses to make it as easy to cancel a subscription or service as it was to sign up, becomes permanently enshrined in statute.
Supporters argue
Supporters argue this provision is essential for consumer protection, preventing companies from using deceptive practices to retain customers in unwanted subscriptions. It ensures that the FTC's efforts to curb "dark patterns" in cancellations are permanently secured, regardless of future administrative changes.
Critics contend
Opponents might argue that codifying a specific regulatory rule removes necessary flexibility for the FTC to adapt to market changes. They could also contend that the rule itself, now codified, might impose overly prescriptive requirements on businesses, potentially stifling innovation or increasing compliance costs unnecessarily.
Tradeoffs
The provision balances consumer protection against potential regulatory burdens on businesses. It aims to prevent deceptive practices while potentially requiring companies to invest in new cancellation infrastructure or processes.
Section 2(b)
Enforcement of Codified Rule
This subsection clarifies that any violation of the newly codified "Negative Option Rule" will be treated as a violation of a regulation concerning unfair or deceptive acts or practices under the Federal Trade Commission Act. It also grants the FTC the full authority, jurisdiction, powers, and duties to enforce this section, meaning violators will face the same penalties and enjoy the same privileges and immunities as those under the broader FTC Act.