“Click to Cancel” Rule: What Every Membership Business Needs to Know Before July 14

Starting July 14, 2025, a major update from the Federal Trade Commission (FTC) goes into effect—and if your business offers any kind of subscription or membership, you need to be ready.

This rule is being called “Click to Cancel”—and it’s exactly what it sounds like.

Let’s break down what it means for you, why it matters, and how to protect your business before the deadline hits.

⏳ What is the FTC’s “Click to Cancel” Rule?

Under this new rule, if your business sells recurring subscriptions or memberships online, the FTC now requires you to make it just as easy to cancel as it was to sign up.

In other words:

If a customer can sign up with a few clicks, they should be able to cancel with a few clicks, too.

The FTC is cracking down on businesses that make people jump through hoops to cancel. That includes shady practices like hiding the cancel button, requiring phone calls to cancel online services, or adding unnecessary delays.

This is a legal requirement, not a suggestion.

🛍️ Who Needs to Comply?

If you offer:

• Monthly or annual membership programs

• Subscription boxes or digital products

• Auto-renewing services, courses, or software

• Any kind of recurring billing model

Then yes—you’re on the hook for this.

Even if you’re a small biz, solo founder, or creative entrepreneur, if you offer automatic renewals, the Click to Cancel rule applies to you.

🧠 Why the Rule Exists

The FTC is responding to thousands of consumer complaints about what they call "negative option marketing"—aka sneaky setups where it’s easy to subscribe, but confusing or difficult to cancel.

They want more transparency, more fairness, and clear consent from consumers.

You now have a legal obligation to:

• Make cancellation simple and obvious

• Offer the same channel for cancellation that was used to sign up (online in = online out)

• Stop tricking people into staying subscribed

• Get new, explicit consent if you’re making changes to billing terms

🔎 Real Talk: What This Means for You

You’ve worked hard to build a recurring revenue stream—so don’t let non-compliance get you fined or reported.

Here’s what you should do ASAP:

1. Audit your cancellation process
   → If someone joined via your website, they must be able to cancel on your website. No email tag, no "call us first."

2. Update your Membership Terms + refund policy
   → Make your cancellation terms clear and compliant. No confusion. No fluff.

3. Send an update to existing members
   → Let them know their rights and your updated cancellation process.

4. Keep receipts
   → Document when and how customers opt in to your membership, so you’re protected if a chargeback or complaint comes up.

📄 Need Compliant Terms? We’ve Got You.

Our Membership Terms Template has been specifically updated to help you comply with the FTC’s new Click to Cancel rule going into effect July 14, 2025.

It includes:

• Easy-to-understand cancellation language

• Auto-renewal disclosures

• Refund and cancellation policy sections written in plain English

• Built-in trust and transparency for your members

👉 Download the template HERE and stay ahead of compliance issues before they become costly.

If you run a membership or recurring offer, this update isn’t optional—it’s essential.

💬 Final Word: Don’t Let This Slide

We know legal stuff can feel overwhelming—but this one’s serious. The FTC is watching, and non-compliance could lead to major fines, chargebacks, or worse: customer distrust.

Click to Cancel is about clarity, consent, and compliance.

Make it easy for your members to trust you—and even easier for you to sleep at night.

🛒 Grab your Membership Terms Template now

Your recurring revenue deserves legal protection.

⚖️ Disclaimer:

This blog post is for educational and informational purposes only and is not legal advice. Purchasing a template from The Legalmiga Library® does not create an attorney-client relationship. If you have specific questions about how the FTC’s Click to Cancel rule applies to your business, we recommend consulting a licensed attorney in your state.