Click to Cancel Consumer Protection Act of 2025

The Click to Cancel Consumer Protection Act of 2025 would statutorily codify the Federal Trade Commission’s (FTC) negative option rule. Specifically, it would give the FTC’s rule, currently located at 16 CFR Part 425, the force and effect of law by treating the rule as statutory text as of July 7, 2025. The rule governs “negative option” marketing—business practices in which consumers are enrolled in a recurring program or billed for goods/services on a continuing basis unless the consumer takes action to opt out or cancel. By codifying the rule, the bill aims to preserve and strengthen protections against auto-enrollment, auto-renewals, and similar practices that can trap consumers into ongoing charges without clear, affirmative consent or adequate disclosures. The bill was introduced in the Senate (S. 2254) by Senators Gallego and Welch and would take effect by giving the specified CFR provision the force of federal law. In practice, codification would mean that the FTC’s rules on conduct, disclosures, opt-out opportunities, and consent requirements governing negative option plans would operate as statutory requirements, not merely as agency regulations. This could limit regulatory changes that would weaken the rule and would provide a clearer basis for enforcement and potential penalties under federal law.