Click to Cancel may live to click again
Congressional measure would replace an FTC rule blocked by the courts
Don't give up on the Click to Cancel concept just yet. A California congressman has introduced a measure that would revive the overwhelmingly popular Federal Trade Commission rule that was struck down by the courts before it had a chance to go into effect.
The measure was modest enough. It basically provided that it should be as easy for consumers to cancel a subscription as it was to sign up. But even such a simple and straightforward measure sent corporate hearts aflutter and armies of lobbyists, lawyers and influence peddlers declared war.
As expected, lawsuits were filed, claiming not that the rule wasn't needed, wouldn't work or was otherwise defective. No, as is usual in such skirmishes, the arguments were strictly procedural -- claiming that the Biden-era FTC hadn't crossed all the t's, etc.
It didn't take long for a three-judge panel from the U.S. Court of Appeals for the Eighth Circuit agreed to find in mid-July that the “Commission’s rule-making process was procedurally insufficient and Petitioners demonstrated prejudicial error."
In response to the nationwide chorus of groans from consumers getting unwanted monthly jelly shipments, exciting email newsletters and anti-virus programs for computers long since put out of their misery, Rep. Brad Sherman (D-Calif.) introduced the Click-to-Cancel Act of 2025.
“This legislation would ensure that auto-renew subscription services are transparent, easy to cancel, and required to gain explicit consent from the consumer before they are charged for services,” Sherman said.
Specifically, Sherman's Click-to-Cancel Act would codify the FTC Negative Option rule into statute and require companies to:
Provide a simple, direct mechanism to cancel a subscription and immediately stop charges.
Obtain clear and informed consumer consent before enrolling anyone in an auto-renewal program.
Clearly disclose all material terms before collecting any billing information.
Cheers from the consumer corner
Consumer advocates lost no time praising Sherman's measure, although its fate is uncertain and it will face the same wall of impregnability as its predecessor.
“Consumers shouldn’t have to jump through hoops to cancel a subscription they signed up for with a single click. [This] bill offers a simple, commonsense solution to a widespread problem: companies trapping people in costly subscriptions with deceptive and deliberately difficult cancellation processes,” said J.B. Branch, Big Tech Accountability Advocate at Public Citizen.
“Americans are tired of being scammed by subscription services that bank on forgetfulness and frustration. Whether it’s a gym membership, streaming service, or online app, it should be just as easy to cancel as it was to sign up. We applaud this effort to codify the click to cancel protections into law and urge Congress to move swiftly to protect consumers from these predatory practices,” Branch said.
"The Click to Cancel Rule is simple, commonsense policy that's long overdue. Passing this bill could be the easiest vote for Members of Congress to cast this year, and the most popular too.” John Breyault, National Consumers League Vice President of Public Policy, Telecommunications, and Fraud.
Co-sponsoring Sherman's bill in the House are Congressman Seth Magaziner (RI-2) and Congressman Chris Deluzio (PA-17), with Senator Ruben Gallego (D-AZ) introducing companion legislation in the Senate
“Too many people are stuck paying for monthly subscriptions they don't want, and that companies make nearly impossible to cancel. I am proud to lead legislation to make it easier to cancel recurring payments and put power back in the hands of everyday people who work hard for their money," Rep. Magaziner said.
Gyms, streamers, e-commerce
The issue spans industries—from gyms and streaming services to apps and e-commerce platforms—with consumers often reporting long hold times, hidden links, and misleading prompts designed to prevent cancellation. These tactics have become a key profit center for companies banking on user forgetfulness and frustration.
“Americans are tired of being scammed,” Branch added. “Congress should move swiftly to protect consumers from these predatory practices.”
The Click-to-Cancel Act is expected to draw support from consumer rights organizations and regulatory advocates. However, it is certain to face resistance from business groups concerned about compliance costs and limitations on marketing tactics.
Sherman’s office has not yet announced a hearing date, but legislative watchers say the bill could gain momentum as lawmakers sharpen their focus on tech accountability and consumer protection heading into the 2026 election cycle.
Not Sherman's first rodeo
It's not the first consumer crusade for Sherman, of Sherman Oaks. He was among the leaders behind the formation of the Consumer Financial Protection Bureau, recently beheaded by the Trump Administration. It worked valiantly to protect consumers from financial institutions issuing credit cards and offering costly overdraft protection. Sherman also protected families' retirement funds and college savings and put controls on companies which reward corporate CEOs multi-million dollar bonuses for bad performance.