FTC Takes Another Step Toward New 'Click to Cancel' Rule

FTC Takes Another Step Toward New 'Click to Cancel' Rule

WASHINGTON — The Federal Trade Commission (FTC) is negotiating the latest procedural hurdle in its effort to renew rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

In a statement issued Friday, the FTC announced that it has submitted a draft Advance Notice of Proposed Rulemaking (ANPRM) concerning its Negative Option Rule to the Office of Information and Regulatory Affairs (OIRA). The OIRA, which is part of the Office of Management and Budget, will review the ANPRM before the FTC can publish it in the Federal Register, at which point consumers will be able to submit comments.

The Commission vote approving the planned ANPRM submission for OIRA review was 2-0. There are currently only two FTC commissioners, leaving three vacant slots. One of the two current commissioners, Chairman Andrew N. Ferguson, previously voted against approving the updated Negative Option Rule, which passed 3-2 in October 2024.

The rule was later vacated by the U.S. Court of Appeals for the 8th Circuit pending further review, after critics objected that the agency exceeded its authority and skirted procedural rules by failing to issue a preliminary regulatory analysis.

In December 2025, the FTC posted a petition for rulemaking from the Consumer Federation of America and the American Economic Liberties Project. The public comment period on the petition ended Jan. 2.

The Negative Option Rule was originally adopted in the 1970s to protect consumers from being automatically enrolled in subscription plans without their consent. As amended in 2024, the rule would have been applied to almost all negative option programs, including automatic renewal and free-to-pay offers. Such changes would likely have required website operators to make substantial changes to sign-up and cancellation practices.

The current reinitiated process could lead to the FTC proposing the same or similar changes.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

JustFor.fans Wins Trademark Infringement Case Against Fraudulent Domain

The World Intellectual Property Organization (WIPO) has ruled in favor of fan site JustFor.fans in a case against a website using an infringing domain.

Aylo Moves to Settle Two 'Children of Pornhub' Class-Action Lawsuits

Aylo has agreed to terms for a settlement with the plaintiffs in two long-running class actions over allegations that former Pornhub parent company MindGeek knowingly allowed and profited from CSAM on its sites.

Tigerlilly Launches 'SugarCoatedSweethearts' Through PAYSITE

Tigerlilly has launched SugarCoatedSweethearts.com through PAYSITE.

ASACP Marks 30-Year Anniversary

ASACP is celebrating 30 years of operation, during which it has received over 1.3 million reports from web admins and the public about suspected child pornography.

AEBN Announces Isiah Maxwell as Top Male Boy/Girl Performer for Summer 2026

AEBN has revealed its top 10 male Boy/Girl performers for summer 2026, with Isiah Maxwell landing atop the leaderboard.

JMan Launches AI Companion Solution for Adult Websites

Online industry veteran JMan has launched Orkestrait, an AI companion solution designed specifically for adult websites.

Johnny Sins Launches 'Fangate' Platform for Account-Free Content Sales

Johnny Sins has officially launched Fangate, a platform that allows creators to sell content directly to fans without requiring a user account or subscription.

TSBlondieNYC Launches Official Website Through PAYSITE

TSBlondieNYC has launched an official website through PAYSITE.

Creator and Sexual Wellness Brand Marketplace Platform 'Teasr' Launches

Teasr, an online marketplace for creators and sexual wellness brands that focuses on live-selling and video product demonstrations, has officially launched.

JulModels Launches Paysite Content Royalty Program for Performers

JulModels has introduced JulRoyalty, a feature that allows performers and creators to earn royalties from their existing scenes and clips.

Show More