Legislation aimed at subscription pitfalls, introduces 'Click-to-Cancel' method, revives measure struck down by the court
The Click-to-Cancel Act of 2025, a bill aimed at eliminating barriers consumers face when canceling online subscriptions, has garnered significant attention and support. U.S. Rep. Brad Sherman (D-Calif.) has introduced this legislation, which seeks to protect consumers from predatory practices in the cancellation process of online subscriptions.
The bill, reminiscent of a previously blocked Federal Trade Commission (FTC) rule, aims to make subscription cancellations as straightforward as the signup process. J.B. Branch, a Big Tech accountability advocate at Public Citizen, supports the bill, stating that it offers a solution to a widespread problem: companies trapping people in costly subscriptions with deceptive and deliberately difficult cancellation processes.
The bill has won broad public support before its legal setback. However, the Click-to-Cancel Rule, intended to make subscription cancellation "at least as easy" as subscribing and to prohibit deceptive marketing and require clear disclosures and consent, was struck down on procedural grounds related to insufficient agency analysis and justification. Consequently, businesses are no longer legally required to comply with this rule for now.
Despite this legal setback, consumer protection concerning subscription cancellations will likely continue through other regulatory and enforcement channels. The FTC, now under Republican control, appears unlikely to appeal or reissue the rule, but it remains active in enforcement against deceptive subscription practices under other authorities, such as Section 5 of the FTC Act. State Attorneys General may increase their enforcement activities to fill this regulatory gap.
The bill could face resistance from business groups concerned about compliance costs and limitations on marketing tactics. However, with growing public discontent over being scammed and faced with long hold times, hidden links, and misleading prompts when trying to cancel online subscriptions across various industries, the Click-to-Cancel Act could gain momentum in the coming months. As lawmakers sharpen their focus on tech accountability and consumer protection heading into the 2026 election cycle, the bill is expected to remain a topic of discussion.
References:
- FTC's Click-to-Cancel Rule Vacated by Court
- Click-to-Cancel Act: What It Means for Consumers and Businesses
- The Click-to-Cancel Act: A Step Forward for Consumer Protection
- FTC's Click-to-Cancel Rule Blocked in Court
The Click-to-Cancel Act, if passed, promises to address a pervasive issue in the business sector, where companies use complicated and deceptive practices to keep consumers trapped in costly subscriptions. Moreover, the legislation, initially supported by a broad public and advocacy groups like Public Citizen, might face resistance from business groups concerned about compliance costs and restrictions on marketing tactics, but it could gather momentum as lawmakers prioritize tech accountability and consumer protection.
