Follows Federal Courts Blocking FTC Rule That Would Prevent Unwanted Charges
WASHINGTON – Today, Senator Ruben Gallego (D-AZ) introduced a bill to codify the FTC’s Click-to-Cancel rule to make cancelling subscriptions easier. On Tuesday, a federal appeals court blocked the rule days before it was supposed to go into effect on July 14.
“Too many companies are relying on shady fine print and confusing cancellation processes to lock customers into charges they never agreed to. They’re counting on customers to forget, give up, or get stuck in the fine print so they can keep charging their card every month,” said Senator Gallego. “This bill puts an end to that scam by giving the FTC’s Click-to-Cancel rule the full force of law so that people can cancel subscriptions just as easily as they sign up for them. It’s a commonsense fix that will save families money and stop businesses from trapping customers in subscriptions they don’t want, can’t use, or never meant to keep.”
Click-to-Cancel, also known as the Negative Option Rule, cracks down on deceptive practices in subscription-based services by requiring companies to clearly disclose their terms upfront and get customers’ consent before charging for memberships, auto-renewals, and subscriptions connected with free trials.
The legislation is supported by Senators Peter Welch (D-VT) and John Fetterman (D-PA) and endorsed by National Consumers League, Fight Corporate Monopolies, Public Citizen, Groundwork, and the National Parents Union.
“Making subscriptions as easy to cancel as it was to sign up is overwhelmingly popular and truly a nonpartisan issue,” said John Breyault, Vice President of Public Policy, Telecommunications, and Fraud, National Consumers League.“Putting the FTC’s rule into law should be the easiest ‘yes’ vote any senator will take this year.”
“This bill does exactly what the Trump FTC has failed to do: stand with working Americans and deliver commonsense solutions that help Americans save money,”said Morgan Harper, Senior Advisor, Fight Corporate Monopolies. “The Biden administration FTC’s Click-to-Cancel Rule was simple, popular, and long overdue — and it was thrown out on a paperwork technicality after years of public comment and overwhelming support. Congressional Democrats are right to step in and codify this critical rule to lower costs for families.”
“Consumers deserve safeguards to prevent them from being trapped into paying for a service they no longer want with no straightforward way to cancel a subscription. With this week’s win by conservative big business interests in the courts against the FTC, Congressional action is essential. We applaud this sensible measure from Senator Gallego to protect the public and hope it swiftly becomes law,” said Lisa Gilbert, Co-President, Public Citizen.
“Anyone who makes it impossible to unsubscribe from their business isn’t running an honest business. The FTC rule would have stopped that. And this will too,” Alvaro Bedoya, Former Commissioner of the United States Federal Trade Commission.
Full text of the legislation is available HERE.
7/10/25