Click to Cancel Act of 2025

Bill Number

H.R. 4819

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Introduced

Latest Action

2025-07-29: Referred to the House Committee on Energy and Commerce.

Last Updated

2026-05-15T08:07:12Z

AI-Generated Summary

Purpose

The Click to Cancel Act of 2025 aims to make a specific Federal Trade Commission (FTC) rule on "click-to-cancel" a permanent part of U.S. law. This rule focuses on simplifying how consumers can cancel subscriptions or recurring charges (known as "negative option" features, where consumers must actively opt out rather than opt in). By codifying the rule, the bill ensures stronger, lasting protections against unfair billing practices in online and subscription services.

Key Provisions

• Codification of the Rule: The FTC's November 15, 2024, rule (published in the Federal Register at 89 Fed. Reg. 90476) on the Negative Option Rule becomes federal law with full legal force.
• Enforcement as Unfair Practices: Any violation is treated as an unfair or deceptive act under Section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)), allowing the FTC to investigate and penalize offenders.
• FTC Powers: The FTC enforces the law using all its existing authorities under the Federal Trade Commission Act (15 U.S.C. 41 et seq.), including issuing fines, seeking injunctions, and providing consumer remedies. Violators face the same penalties as under the FTC Act, while compliant parties retain legal protections.

Significant Changes to Existing Law

• Elevation from Regulation to Statute: Previously, the rule was an FTC regulation that could be challenged or altered through administrative processes. Codification makes it statutory law, requiring congressional action to change or repeal it, which adds permanence and reduces vulnerability to legal challenges or future agency shifts.
• Streamlined Consumer Protections: Builds on the FTC Act by explicitly incorporating negative option rules into enforceable law, closing potential gaps in how subscription cancellations are handled (e.g., requiring easy "one-click" cancellation options).

Potential Impacts

• On Citizens (Consumers): Makes it easier and faster to cancel unwanted subscriptions, reducing "subscription traps" where companies make signing up simple but canceling difficult. This could save consumers time and money, enhancing trust in online services.
• On Government Agencies: Empowers the FTC with statutory backing for enforcement, potentially increasing its efficiency in handling complaints and lawsuits against non-compliant businesses. No direct impact on international relations, as the bill focuses on domestic consumer protections.
• On Businesses: Subscription-based companies (e.g., streaming services, gyms, or e-commerce sites) must update their cancellation processes to comply, which may raise operational costs but promote fairer practices overall.

Main Stakeholders Affected

• Consumers: Primary beneficiaries, gaining stronger rights against misleading billing.
• Businesses Offering Subscriptions: Including tech companies, retailers, and service providers, who must adapt to "click-to-cancel" requirements to avoid penalties.
• Federal Trade Commission (FTC): Gains enhanced authority and resources for oversight and enforcement.
• State Attorneys General and Consumer Advocates: May support FTC actions, as the bill aligns with broader consumer protection efforts.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Strengthens enforcement against deceptive practices under the FTC Act, potentially leading to more lawsuits and settlements. It upholds consumer rights without infringing on free speech or commerce, as it targets only unfair tactics.
• Constitutional Implications: Aligns with Congress's authority to regulate interstate commerce (Article I, Section 8 of the U.S. Constitution) and does not raise significant First Amendment concerns, as it regulates commercial conduct rather than speech.
• Political Implications: Codifies a recent FTC rule amid debates over consumer privacy and corporate accountability, signaling bipartisan interest in protecting against "dark patterns" in digital marketing (introduced by Representatives Sherman, Magaziner, and Deluzio). It could influence future legislation on tech regulation without major partisan divides.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Sherman, Brad [D-CA-32]

Cosponsors (19)

Rep. Magaziner, Seth [D-RI-2], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Bishop, Sanford D. [D-GA-2], Rep. Fields, Cleo [D-LA-6], Rep. Min, Dave [D-CA-47], Rep. Brown, Shontel M. [D-OH-11], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Thompson, Mike [D-CA-4], Rep. Sorensen, Eric [D-IL-17], Rep. Subramanyam, Suhas [D-VA-10], Rep. Thanedar, Shri [D-MI-13], Rep. Jayapal, Pramila [D-WA-7], Rep. Ocasio-Cortez, Alexandria [D-NY-14], Rep. McClain Delaney, April [D-MD-6], Rep. Moulton, Seth [D-MA-6], Rep. Ramirez, Delia C. [D-IL-3], Rep. Salinas, Andrea [D-OR-6], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Stansbury, Melanie A. [D-NM-1]

Recent Actions

• 2025-07-29: Referred to the House Committee on Energy and Commerce.
• 2025-07-29: Introduced in House
• 2025-07-29: Introduced in House

Bill Versions

• Click to Cancel Act of 2025 — issued 2025-07-29 — PDF (2 pages)