AI Lawyer Blog
FTC Reopens the Topic of “click-to-cancel” and Subscriptions
Greg Mitchell | Legal consultant at AI Lawyer
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Headlines may make it sound like the FTC simply brought back click-to-cancel in March 2026. That is not what happened. On March 11, 2026, the agency announced an Advance Notice of Proposed Rulemaking, and the notice was then published in the Federal Register on March 13. The current deadline for public comments is April 13, 2026. In practical terms, the FTC reopened the rulemaking process and asked for more evidence about negative option marketing practices; it did not put a new nationwide final click-to-cancel rule into immediate effect. You can review the agency’s background on negative option marketing practices for context.
That distinction matters. For subscription businesses, this is a strong compliance and enforcement signal, not an overnight reset of every legal obligation. For consumers, it means the agency is still deciding how far to go after the Eighth Circuit vacated the 2024 amended rule. The March 2026 step is procedural, but it still matters because the FTC is actively rebuilding the record around subscription enrollment, consent, and cancellation through materials like the Eighth Circuit opinion and the current rulemaking record.
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What Did the FTC Actually Announce?
The FTC announced a new ANPRM and asked the public to weigh in on whether the current rule should be amended and, if so, how. The agency is seeking input through the Federal Register notice, the FTC press release, and the underlying ANPRM text, including evidence about recurring billing, enrollment, disclosures, consent, cancellation, costs, and benefits.
This matters even though it is only an early-stage rulemaking step. In a new FTC business guidance post, staff emphasized that the Commission is looking for information on today’s marketplace, enrollment and cancellation practices, and possible ways to address unfair or deceptive conduct. In other words, March 2026 was not a symbolic announcement; it was a real invitation to help shape the next rulemaking record.
Why Is This Happening Again?
The FTC is back on this issue because the existing Negative Option Rule is older and narrower than today’s digital subscription economy. The current rule in 16 CFR Part 425 was built around prenotification plans, while the modern marketplace is dominated by online subscriptions, app renewals, continuity programs, and free-trial conversions. The Commission’s Negative Option Rule page and March 2026 materials make clear that it wants updated evidence before deciding whether to keep the current framework, borrow from the vacated 2024 rule, or move in another direction.
The immediate trigger was the court fight over the 2024 amendments. In October 2024, the FTC announced a final “Click-to-Cancel” rule, but on July 8, 2025, the Eighth Circuit vacated that rule. That is why the March 2026 process is best understood as a reset-and-rebuild phase rather than a quiet restoration of the 2024 package.
What Problems Is the FTC Still Focused On?
At a basic level, a negative option is a billing arrangement where a seller treats the consumer’s silence or failure to act as acceptance. The definition appears in the Telemarketing Sales Rule, and the FTC has also summarized its broader enforcement approach in the 2021 Negative Option Policy Statement. The common thread is straightforward: recurring charges become a legal problem when consumers do not clearly understand the deal, do not meaningfully consent, or cannot easily stop the billing.
The FTC’s focus is not on banning subscriptions as a model. Its focus is on the familiar risk points where recurring billing turns into consumer harm: weak disclosures, questionable consent, and hard-to-use cancellation paths. That pattern shows up in the FTC’s Dark Patterns report, in the agency’s Amazon Prime case, and in the Adobe subscription case. Those examples explain why the FTC is still treating this issue as a priority in 2026.
What Laws Already Apply Right Now?
Businesses should not read the 2025 court decision as a reset button. The FTC still has enforcement authority, and it still relies on Section 5 and related consumer-protection statutes to challenge unfair or deceptive conduct. The agency’s Negative Option Policy Statement also makes clear that the FTC has long used a mix of authorities, not just one rule, when recurring-billing practices cross the line.
For online offers, ROSCA remains central. FTC materials describe ROSCA as requiring clear disclosure of material terms, express informed consent before charging, and a simple way to stop recurring charges, as reflected in both the FTC’s ROSCA guidance and more recent enforcement announcements such as the Uber billing and cancellation case. You can also review the statute itself here: Restore Online Shoppers’ Confidence Act (ROSCA).
If the offer is made by phone, the Telemarketing Sales Rule can matter as well. The TSR includes its own definition of a negative option feature. So while one broader FTC rule was vacated, the legal risk around deceptive enrollment, obscure terms, and difficult cancellation never disappeared.
What Subscription Businesses Should Do Now
Subscription businesses do not need to guess where to start. The smartest move is to review the customer journey from first impression to final cancellation and compare it against the recurring themes in the March 2026 FTC blog post, the older ROSCA guidance, and the FTC’s current business guidance hub. The practical questions are simple: Are the terms clear? Is consent real? Is cancellation genuinely usable?
Start with signup. Material terms should appear before billing information is collected, trial-to-paid conversion language should be hard to miss, and records should show what the customer saw and agreed to. Then test cancellation like an ordinary user, not like an internal product team. The FTC’s actions involving Adobe, Uber, and Chegg show why buried settings, pressure tactics, or cancellation friction can create legal exposure even before any new rule is finalized.
Businesses that want to be proactive should also read the March 2026 materials and consider submitting a comment. The best starting points are the Federal Register notice and the FTC press release. If a company has operational or compliance data, this is a live opportunity to help shape the next phase of the rulemaking.
What Consumers Should Watch For
For consumers, the most important moments are still the same: when a free trial turns into a paid plan, when renewal terms are displayed, and when it is time to cancel. The FTC’s consumer guidance on how to stop subscriptions you never ordered and its earlier click-to-cancel feedback request point to the same practical reality: save proof, track dates, and do not assume the merchant’s cancellation flow will be simple or well documented.
Before signing up, check the full price, renewal timing, trial end date, and where cancellation actually happens. After signing up, save the confirmation email, screenshots of the offer, and any cancellation attempt. Consumers who want a step-by-step workflow can also use AI Lawyer’s guide on how to quickly cancel your subscription and get a refund, while people who want to influence the rulemaking itself can still review the FTC announcement and the Federal Register comment page. The practical goal is simple: make cancellation easier to prove and reduce the risk of ongoing disputed charges.
FAQ
Does March 2026 change compliance obligations overnight?
No. The March 2026 action was an ANPRM announcement followed by a Federal Register notice. It reopened the rulemaking process and requested public comment; it did not itself impose a new final nationwide rule.
Can the FTC still enforce against harmful subscription practices today?
Yes. The FTC still has consumer protection enforcement authority, and online recurring offers can still trigger ROSCA. The FTC’s own enforcement statements and cases continue to treat deceptive billing and cancellation practices as actionable.
What is a negative option in plain English?
It is a setup where your silence or failure to act is treated as permission to keep charging you. That basic concept appears in the Telemarketing Sales Rule definition, and the FTC’s Negative Option Rule page gives the broader rulemaking context.
When does the current comment period close?
According to the Federal Register notice and the FTC’s March 11, 2026 press release, the current deadline is April 13, 2026.
Sources and References
Federal Register: Rule Concerning the Use of Prenotification Negative Option Plans
Eighth Circuit opinion vacating the 2024 rule
eCFR: 16 CFR Part 425 — Use of Prenotification Negative Option Plans
FTC Press Release: Final “Click-to-Cancel” Rule (October 16, 2024)
eCFR: 16 CFR 310.2 — Telemarketing Sales Rule Definitions
FTC Negative Option Policy Statement (2021)
FTC v. Amazon Prime press release
FTC Enforcement Authority overview
FTC Legal Library: Enforcement Policy Statement Regarding Negative Option Marketing
FTC Legal Library: Restore Online Shoppers’ Confidence Act (ROSCA)
FTC Business Blog: Recipe for a ROSCA violation
eCFR: 16 CFR Part 310 — Telemarketing Sales Rule
FTC Business Blog: Chegg settlement and subscription practices
