Click to Cancel Consumer Protection Act of 2025
Summary
The Click to Cancel Consumer Protection Act of 2025 aims to codify the Federal Trade Commission's (FTC) negative option rule into law. This rule, currently found in Part 425 of Title 16 of the Code of Federal Regulations, regulates subscription services and automatic renewals. The Act seeks to give this rule the full force and effect of law, enhancing its enforceability.
Expected Effects
The primary effect of this Act would be to make it more difficult for companies to enroll consumers in unwanted subscription services. Consumers would have an easier time canceling subscriptions. This could lead to a decrease in revenue for businesses that rely on negative option marketing.
Potential Benefits
- Easier cancellation of unwanted subscriptions.
- Increased transparency in subscription services.
- Potentially lower costs for consumers by avoiding unwanted charges.
- Greater consumer control over their spending.
- Reduced deceptive marketing practices.
Most Benefited Areas:
Potential Disadvantages
- Potential decrease in revenue for businesses offering subscription services.
- Possible increase in prices for subscription services to offset revenue loss.
- May require businesses to update their systems and processes to comply with the law.
- Could lead to fewer subscription service options if businesses find it harder to attract and retain customers.
- Potential for unintended consequences if the codified rule is interpreted differently by courts.
Most Disadvantaged Areas:
Constitutional Alignment
The Act appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. By codifying the FTC's negative option rule, the Act aims to regulate business practices related to subscription services that often operate across state lines. The Act does not appear to infringe upon any specific individual rights or freedoms protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).