FTC Delays “Click-to-Cancel” Rule Until July 14 and Yes, It Applies to B2B Subscriptions

In a last-minute decision, the Federal Trade Commission (FTC) announced that it is delaying enforcement of its new “Click to Cancel” rule by 60 days. The rule, originally set to take effect today, May 14, will now be enforced starting July 14, 2025. If you sell subscriptions or auto-renewing services, now is the time to pay attention.

The FTC’s new rule aims to crack down on companies that make it easy to sign up for a service but frustratingly hard to cancel. The updated rule requires that cancellation be just as simple as the sign-up. If a customer enrolled online, they must be able to cancel online. You cannot force them to call, email, or chat unless that was how they signed up in the first place.

Many companies assumed this only applied to consumers. It does not. Business-to-business (B2B) sellers are also covered. If your company offers recurring services like SaaS platforms, digital tools, or other services, you are expected to follow the same rules. The only exception is for individually negotiated B2B contracts, and even those must offer cancellation terms that are no more difficult than enrollment.

While the FTC gave everyone extra time, it’s not much. By July 14, your business needs a cancellation process that is simple, straightforward, and matches the original sign-up channel. Whether your customer is an individual or another company, the FTC expects the same level of transparency and fairness. Use the next two months to tighten up your process before the countdown ends.