Amazon Prime settlement
The FTC announced a $2.5 billion settlement in its case alleging violations of the FTC Act and ROSCA over Prime enrollment and cancellation: a $1 billion civil penalty and up to $1.5 billion in consumer refunds.
CLICK-TO-CANCEL / WHERE IT STANDS
Is click-to-cancel law in effect? Where things stand in late 2026.
No federal click-to-cancel rule is in effect. The FTC’s 2024 rule was vacated by the Eighth Circuit on 8 July 2025, and the FTC reopened the question with an advance notice in March 2026 without proposing a new rule as of 31 October 2026. ROSCA still applies to online subscriptions, and several state and city click-to-cancel rules are in force.
Reviewed · General information, not legal advice.
READING MAPWhat happened.
What happened.
What still applies.
What to keep.
A dated summary for owners and operators of consumer subscription businesses, with sources you can check. It does not decide whether a rule covers your offer.
The FTC click-to-cancel rule, step by step
The rule was finalized, challenged and vacated before its main requirements applied. The FTC has since reopened the question but has not proposed new text.
- 01.116 Oct 2024
FTC announces the final click-to-cancel rule
The amended Negative Option Rule added requirements for disclosing material terms, getting express informed consent and offering cancellation at least as easy as sign-up. It was published in the Federal Register on 15 November 2024. Source: FTC press release
- 01.28 Jul 2025
Eighth Circuit vacates the rule
In Custom Communications, Inc. v. FTC, the court vacated the amended rule because the FTC had not prepared the preliminary regulatory analysis required by section 22 of the FTC Act. The decision came days before the rule’s main requirements were due to be enforced. The court did not decide whether the policy itself was sound. Source: FTC ANPRM background, 91 FR (13 Mar 2026)
- 01.312 Feb 2026
The FTC conforms its rules to the court decision
A Federal Register notice revised the Negative Option Rule to conform it to the court ruling. The older rule covering prenotification negative option plans remains. Source: FTC Federal Register notice
- 01.411–13 Mar 2026
FTC reopens the question with an ANPRM
An advance notice of proposed rulemaking asked whether to keep the current rule, adopt provisions of the vacated 2024 rule or other provisions, or use alternatives to regulation. It was announced on 11 March and published on 13 March 2026. Source: FTC press release
- 01.513 Apr 2026
Comment period closes
Comments on the advance notice were due by 13 April 2026. An advance notice is an early step; it does not create new duties for businesses. Source: ANPRM text via GovInfo
- 01.631 Oct 2026
No proposed rule listed yet
When we reviewed this page, the FTC’s Negative Option Rule page listed no notice of proposed rulemaking after the March 2026 advance notice. Check the FTC page for later steps. Source: FTC Negative Option Rule page
02 / STILL IN FORCEROSCA still
ROSCA still
applies online.
The Restore Online Shoppers’ Confidence Act was enacted in 2010 and covers negative option sales made over the internet. It requires clear disclosure of material terms before collecting billing information, express informed consent before charging, and simple ways to stop recurring charges.
Complaint against JustAnswer
The FTC sued, alleging that advertised low “join” fees enrolled people in a monthly subscription without the disclosures and consent ROSCA requires. These are allegations; the court has not decided the case.
Complaint against the Genesis Tech enterprise
The FTC asked a court to halt subscription schemes it says hid recurring charges, alleging violations of the FTC Act and ROSCA. These are allegations; the court has not decided the case.
These are examples, not a complete list. Amounts reflect one case and are not a standard penalty. Read the FTC’s ROSCA business guidance and the March 2026 advance notice, which describes ROSCA as the only federal law primarily designed to regulate negative option marketing.
03 / STATE AND CITY RULES
Click-to-cancel rules that do apply.
These rules were verified against official or law-firm sources on 31 October 2026. Many other states have automatic renewal laws; this is not a complete list. Coverage, notice windows and exemptions differ.
| Where | Rule | Effective | Source |
|---|---|---|---|
| Minnesota | Automatic renewal law, Minn. Stat. §§325G.56–325G.62. Consumers can end an indefinite subscription at any time; free trials over 30 days need a reminder 5–30 days before they end. | 1 January 2025 | Minnesota House, new laws 2024 |
| California | Automatic Renewal Law amendments (AB 2863). For covered contracts entered into, amended or extended from that date. Our California guide. | 1 July 2025 | California Attorney General |
| Colorado | Online cancellation of automatic renewal contracts (SB25-145). Online sign-ups need an online cancellation path; retention offers must sit beside a direct cancel link. | Act effective 6 August 2025; cancellation requirements fully in effect 16 February 2026 | Colorado General Assembly; sponsors’ release, 13 Feb 2026 |
| Massachusetts | Attorney General regulation on unfair and deceptive fees, 940 CMR 38.00. Includes negative option and cancellation provisions, not only fee disclosures. | 2 September 2025 | Massachusetts Attorney General |
| New York State | General Business Law §527-a amendments (2025–26 budget). Same-medium cancellation and 5–30 day notice of material changes. Our New York guide. | 5 November 2025 | NY Senate statute text; effective date per Olshan Frome Wolosky, June 2025 |
| Maryland | Consumer Protection – Automatic Renewals (HB 107, Chapter 205 of 2025). Requires a cost-effective, timely and easy-to-use way to cancel. | 1 June 2026 | Maryland General Assembly |
| New York City | DCWP click-to-cancel rule for automatic renewal and continuous-service offers. Cancellation through the same method as sign-up; civil penalties start at $525. Our New York guide. | 1 October 2026 | NYC Department of Consumer and Worker Protection |
| Louisiana | Click-to-Cancel Act (HB 750, Act 830 of 2026). Enacted but not yet in effect when reviewed. | Scheduled for 1 January 2027 | Kelley Drye summary, 14 Jul 2026 |
The Louisiana entry relies on a law-firm summary because the official legislature site could not be reached during this review. The New York State effective date comes from a law-firm alert; the linked statute shows the current text.
04 / YOUR RECORDSWhat to keep
What to keep
on record.
Whichever rules apply, the same questions come up in a dispute or review: what did the customer agree to, what were they told, and what happened when they asked to cancel?
How the customer agreed
The agreement source, date and method: a checkbox, button text, signed form or recorded call. A payment shows a charge went through; it does not show which renewal terms the customer accepted.
The offer as it appeared
The price, billing frequency, trial length, renewal terms and cancellation instructions shown at sign-up, saved as a dated version so a later change does not overwrite what an earlier customer saw.
Reminders and change notices
The content, planned date and reported send or delivery result for trial, renewal and price-change notices. A saved notice is not a sent message, so record the outcome separately.
Requests and outcomes
When and how the customer asked to cancel, any save offer shown, and when billing actually stopped. The request and the outcome can tell different parts of the story.
Organized records support a review. They do not replace the duty.
TermWitness stores the terms, consent sources, notice records and cancellation history your team enters or imports. It does not send subscriber notices, run cancellations, decide which rules apply or confirm that an offer meets them. Use qualified counsel for legal decisions.
See what TermWitness does05 / QUESTIONS
Click-to-cancel questions.
Direct answers, current as of 31 October 2026.
01Is the FTC click-to-cancel rule in effect?
No. The Eighth Circuit vacated the FTC’s amended Negative Option Rule on 8 July 2025, before its main requirements took effect. In February 2026 the FTC conformed its rules to that decision. The older rule covering prenotification negative option plans remains.
02Is the FTC writing a new click-to-cancel rule?
It has started the process again. On 11 March 2026 the FTC announced an advance notice of proposed rulemaking asking whether to keep the current rule, adopt provisions from the vacated 2024 rule or take another approach. Comments closed on 13 April 2026. As of 31 October 2026 the FTC’s rule page listed no proposed rule.
03Does ROSCA still apply to subscriptions?
Yes. The Restore Online Shoppers’ Confidence Act covers negative option sales made online. It requires clear disclosure of material terms before billing information is collected, express informed consent before charging and a simple way to stop recurring charges. The FTC continues to bring cases under ROSCA and the FTC Act.
04Which states have click-to-cancel laws?
Many states have automatic renewal laws. Those verified for this page include Minnesota, California, Colorado, Massachusetts, New York State, Maryland and New York City, with Louisiana’s law scheduled for 1 January 2027. Coverage, notice windows and exemptions differ, so check each rule for your offer.
05What records should a subscription business keep?
Keep how each customer agreed, the offer terms shown at the time, the notices you planned and sent, and each cancellation request with its outcome. California, for example, requires proof of consent to be kept for at least three years or one year after the contract ends, whichever is longer.
06Is this page legal advice?
No. It is general information reviewed on 31 October 2026. Rules change, and whether a rule covers your business depends on your customers, offers and contract dates. Ask qualified counsel before relying on an interpretation.
SOURCE NOTEREVIEWED
31 OCT 2026
31 OCT 2026
Check the current rules before relying on a summary.
Federal rulemaking and state laws on subscriptions changed several times between 2024 and 2026, and more changes may follow. Effective dates above describe when a rule began or is scheduled to apply; transition provisions and exemptions can change who is covered. This page is general information, not legal advice.
Follow the FTC Negative Option Rule page ↗ for federal updates, and ask counsel in each state where you have subscribers to confirm current rules and interpretations.
NEXT / YOUR RECORDS
Get the free records worksheet Start with the history you can show.
Use the free worksheet to list consent, terms, notices and cancellations for each subscriber. When you want them in one place, create a workspace.