The Federal Trade Commission (FTC) is renewing its efforts to regulate auto-renewing subscriptions, commonly known as “negative option” programs. This initiative follows the Eighth Circuit Court of Appeals’ July 2025 decision to vacate the FTC’s previous “Click-to-Cancel” rule on procedural grounds. The court determined that the FTC had not adhered to the necessary procedural requirements under the Federal Trade Commission Act, leading to the rule’s invalidation. ([sidley.com](https://www.sidley.com/en/insights/newsupdates/2025/07/us-ftc-click-to-cancel-rule-struck-down?utm_source=openai))
In response, the FTC submitted a draft Advance Notice of Proposed Rulemaking (ANPRM) to the Office of Information and Regulatory Affairs (OIRA) on January 30, 2026. This step signals the Commission’s intent to revisit and potentially revise regulations governing negative option marketing practices. ([sidley.com](https://www.sidley.com/en/insights/newsupdates/2026/02/us-ftc-signals-renewed-interest-in-click-to-cancel-rulemaking?utm_source=openai))
The original “Click-to-Cancel” rule, finalized in October 2024, aimed to simplify the cancellation process for consumers enrolled in recurring subscription services. It mandated that businesses provide a cancellation mechanism as straightforward as the sign-up process. However, the rule faced legal challenges, culminating in its vacatur by the Eighth Circuit. ([ftc.gov](https://www.ftc.gov/news-events/news/press-releases/2024/10/federal-trade-commission-announces-final-click-cancel-rule-making-it-easier-consumers-end-recurring?utm_source=openai))
Despite the setback, the FTC has continued to scrutinize subscription practices under existing statutes, such as the Restore Online Shoppers’ Confidence Act (ROSCA) and Section 5 of the FTC Act. Recent enforcement actions have targeted companies across various sectors, including e-commerce and digital services, for alleged deceptive billing and cancellation practices. ([gibsondunn.com](https://www.gibsondunn.com/ftc-restarts-negative-option-rulemaking-after-eighth-circuit-vacatur-enforcement-under-rosca-continues/?utm_source=openai))
As the FTC embarks on this renewed rulemaking process, businesses offering subscription-based services should closely monitor developments and assess their compliance strategies. The Commission’s ongoing focus underscores the importance of transparent and consumer-friendly subscription practices in the current regulatory landscape.