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HR 4819119th CongressIn Committee
Click to Cancel Act of 2025
Introduced: Jul 29, 2025
Sponsor: Rep. Sherman, Brad [D-CA-32] (D-California)
Technology & Innovation
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Click to Cancel Act of 2025 would codify the Federal Trade Commission’s November 15, 2024 rule relating to negative option/“click-to-cancel” practices into federal law. By placing the FTC’s Negative Option Rule on the books, the rule would have the full force and effect of law. Violations would be treated as violations of regulations addressing unfair or deceptive acts or practices under the FTC Act, and the FTC would enforce the codified rule using the same authority, procedures, and penalties it already has under the FTC Act. In short, the bill makes the FTC’s 2024 click-to-cancel rule a mandatory nationwide standard with the FTC’s full enforcement mechanism.
Key Points
- 1Codifies the FTC’s November 15, 2024 Negative Option Rule (the “Negative Option Rule”) into statute, giving it the force of federal law.
- 2A violation of the codified rule is treated as a violation of a regulation under FTC Act Section 18(a)(1)(B) regarding unfair or deceptive acts or practices.
- 3The FTC’s enforcement of the codified rule is to be identical in scope and method to how it enforces the FTC Act today (same jurisdiction, powers, duties, and penalties).
- 4The rule being codified is the 2024 Negative Option Rule published in the Federal Register at 89 Fed. Reg. 90476.
- 5Formal title and sponsorship: “Click to Cancel Act of 2025,” introduced by Rep. Sherman (joined by Reps. Magaziner and Deluzio) and referred to the Committee on Energy and Commerce.
Impact Areas
Primary group/area affected: Consumers who engage with subscription services or other arrangements that use negative-option or auto-renew features; end users who may be charged without explicit ongoing consent if cancellation is difficult.Secondary group/area affected: Businesses and platforms that rely on negative-option marketing or auto-renew models (e.g., online retailers, streaming services, subscription boxes) that would need to align practices with the codified rule to ensure clear disclosures and easy cancellation options.Additional impacts: Federal enforcement certainty and consistency across states, potential compliance costs for covered entities, and possibly greater consumer trust in subscription-based commerce due to clearer cancellation processes.
Generated by gpt-5-nano on Oct 8, 2025