Click to Cancel Is Dead, but the FTC Is Still Fighting Subscription Scams

The FTC's 'click to cancel' rule may be dead, but the agency is far from finished fighting subscription scams. In a significant shift, the Federal Trade Commission is now leveraging the Restore Online Shoppers' Confidence Act (ROSCA) to target companies that make cancellation unnecessarily difficult. This move comes after a federal court vacated the FTC's much-anticipated click-to-cancel rule in early 2025, dealing a blow to consumer advocates who had hailed it as a major win against corporate dark patterns. The FTC is using ROSCA to pursue enforcement actions against businesses that fail to provide a simple cancellation method, arguing that such practices constitute unfair or deceptive acts. For example, in March 2025, the FTC announced settlements with three major subscription-based services totaling $12 million in fines for violations under ROSCA. The commission's chair, Lina Khan, emphasized that the agency will not let the court's decision hinder its mission to protect consumers from costly cancellation confusion. The dead click-to-cancel rule would have required companies to allow consumers to cancel subscriptions as easily as they signed up—ideally via the same website or app with a single click. But the Fifth Circuit Court of Appeals ruled that the FTC had exceeded its rulemaking authority in crafting the regulation, siding with industry groups that argued it imposed unnecessary burdens on legitimate businesses. This has left a regulatory gap that the FTC is now trying to fill with ROSCA, an older law originally designed to combat negative option marketing (where consumers are automatically charged unless they cancel). Under ROSCA, the FTC can sue companies that do not clearly disclose terms or provide an easy cancellation mechanism. Since the court ruling, the FTC has issued at least four new enforcement actions against firms in the health, software, and media sectors, seeking hundreds of thousands of dollars in penalties. The renewed focus on ROSCA signals that the FTC intends to keep the pressure on subscription-based businesses, even as legislative efforts to codify click-to-cancel languish in Congress. Consumer groups have applauded the agency's strategy but warn that ROSCA's scope is narrower than the vacated rule, potentially leaving some consumers vulnerable. For instance, ROSCA applies only to negative option offers made via online commerce, not to offline or telephone subscriptions. Going forward, the FTC is expected to ramp up case-by-case enforcement and could seek additional rulemaking under a different legal framework. Meanwhile, several states, including California and New York, are considering their own click-to-cancel laws. The agency has also published updated guidance for consumers on how to spot and cancel unwanted subscriptions. While the death of click-to-cancel was a setback, the FTC's use of ROSCA shows that the battle against subscription scams is far from over. Consumers should remain vigilant and report difficult cancellations to the FTC, as each complaint strengthens the agency's enforcement cases.