The Federal Trade Commission voted on Friday to delay the implementation of the negative option-wide option as widely known as the “Click-Kancel” rule that requires companies to make it so easy to cancel a reconciliation as it was to register.
The rule, which was first nominated in 2023, aimed at businesses that sold physical and digital reconciliations-from transmission services to gym memberships through simple registration flows, only for customers to discover later that they should go through a much more complex process or that requires time to cancel.
According to the negative option, businesses will not be able to force customers to cancel reconciliations through a method other than they used to register – so if you register with a few clicks on a company’s website, you should be able to cancel on their website as well. Companies are also required to provide relevant information regarding cancellation before collecting customer payment information.
According to the FTC, the rule came into force on January 19, but the implementation of some provisions was delayed until May 14. FTC is now delaying implementation for another 60 days, by July 14.
“By conducting a new assessment of the cargo that the compliance obligation to this date would impose, the Commission has determined that the original postponement period was insufficiently calculated for the complexity of compliance,” FTC said in a statement.
The Commission voted 3-0 to delay implementation. FTC traditionally has five commissioners – three from the president’s party and two from the opposing party – but President Donald Trump fired two Democratic commissioners in March. Those commissioners then sued Trump, arguing that their shooting violates a precedent of the Supreme Court that the president cannot ignite FTC commissioners without cause.
Despite the delay, the FTC said it will really begin implementation on July 14, when “regulated subjects must be compliant”.
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“Of course, if this enforcement experience exposes problems with the rule, the commission is open to change the rule to address any such problems,” FTC added.
