Would You Pass the Click-to-Cancel Test?

Don’t Let this new FTC Rule Catch Your Small Service or Membership Business Off Guard!

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Why the FTC has created the Click-to-Cancel Rule

Think back on those times you ordered something online, late at night, while grieving a break-up and devouring a tub of ice cream. The next day, you decide to cancel, only there was no confirmation email with cancelation instructions. So you scour the internet for the website, and spend an hour resetting your password trying to get logged in. Finally! You’re logged in, only to find out there isn’t a cancellation button in your account settings. Now you search for the extra small print on the website for the cancellation policy and contact information. You’re given a phone number to call. You wait on hold for 2 hours, get hung up on, call back, wait on hold again, get transferred, get disconnected. You try again the next day, sit on hold, get transferred, get a person, and are told the purchase is non-refundable even though the commercial you bought off of said the opposite. Are you frustrated yet?

So are thousands of other Americans who file complaints with the FTC every year and that number is growing. While Negative Option programs can offer convenience to both businesses and customers, the FTC consistently receives a high volume of complaints about these practices. Over the past five years, the number of grievances has been on the rise. In 2024, the Commission averaged nearly 70 complaints daily, a significant increase from the 42 complaints per day recorded in 2021.

The FTC decided to do something about, so if you are also the owner of a business that sells any sort of recurring fee product or service, it’s time to find out if you can pass the Click-To-Cancel test.

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What’s inside:

• Why the FTC has created the Click-to-Cancel Rule

• What is the Negative Option Rule?

• What are Negative Options?

• Why Negative Options are a Positive for Consumers and Businesses

• What is the Click-to-Cancel Rule?

• What Should Small Businesses do About the Click-to-Cancel Rule?

• Small Businesses Need to Comply with the Click-to-Cancel Rule

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What is the Negative Option Rule?

The Negative Option Rule is a…

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