Sponsors (20)
The bill strengthens consumer protections and makes subscriptions easier to cancel, but increases compliance burdens on subscription businesses that could raise prices or reduce product flexibility.
Consumers, especially low-income individuals, will gain stronger legal protections against deceptive subscription and negative‑option practices because the FTC rule is codified into law and enforceable by existing FTC authorities.
Consumers will find it easier to cancel recurring charges because the law requires click‑to‑cancel functionality, reducing unwanted charges and saving money.
Small businesses offering negative‑option subscriptions will face higher compliance costs and increased risk of fines because the codified rule creates enforceable regulatory requirements.
Consumers and small businesses may experience higher prices or reduced flexibility in subscription designs as firms pass along or adapt to compliance costs.
Based on analysis of 2 sections of legislative text.
Makes the FTC’s click-to-cancel (negative option) rule federal law and authorizes FTC enforcement of violations under the FTC Act.
Official title: To codify the rule issued by the Federal Trade Commission relating to click-to-cancel, and for other purposes.
Introduced July 29, 2025 by Brad Sherman · Last progress July 29, 2025
Makes the Federal Trade Commission’s November 15, 2024 “Negative Option Rule” (the click-to-cancel rule) into federal law and directs the FTC to enforce the codified rule using the full enforcement powers of the FTC Act. Violations are treated as violations of an FTC regulation and are subject to the agency’s unfair-or-deceptive-practices enforcement authorities and penalties upon enactment.