Free Trials and Auto-Renewal in the United States: Where the FTC’s Click-to-Cancel Rule Stands and What Still Applies

In the United States, a free trial that turns into a paid plan unless the customer cancels is a type of “negative option” offer. The rules around these offers have changed in recent years, and headlines about a “click-to-cancel” rule can leave a wrong impression of what is in force. This guide covers US federal law only, as described by the Federal Trade Commission (FTC) and the federal courts. It is general information, not legal advice, and it does not describe any brand’s trial terms. State laws are outside its scope and vary.

What a negative option is

The FTC describes a negative option as a sales term that allows a seller to treat a customer’s silence, or failure to take action, as acceptance of an offer. It identifies four categories: prenotification plans, continuity plans, automatic renewals, and free-to-pay or nominal-fee-to-pay conversion offers. In the last category, consumers receive goods or services free, or for a nominal fee, for a trial period, and the seller then starts charging unless the consumer affirmatively cancels or returns the goods or services. That is the common shape of a free trial.

The 2024 “Click-to-Cancel” amendments were vacated

The FTC amended its Negative Option Rule in October 2024. The amended rule would have prohibited misrepresentations, required separate consent to the negative option feature, required key disclosures next to the consent request, and required a simple cancellation mechanism, at least as easy to use as the sign-up method. On 8 July 2025, the US Court of Appeals for the Eighth Circuit vacated the amended rule in Custom Communications, Inc. v. FTC, finding that the FTC had not conducted the preliminary regulatory analysis required under section 22 of the FTC Act. The ruling turned on that procedural requirement.

The FTC states that the vacatur reinstated the earlier version of the rule, first promulgated in 1973. That version applies only to prenotification plans for the sale of goods, such as product-of-the-month clubs. In the FTC’s own words, it does not reach most modern negative option marketing, which includes typical online free trials.

What the FTC is doing now

In March 2026 the FTC issued an advance notice of proposed rulemaking (ANPRM) and asked for public comment on negative option marketing. An ANPRM is a request for views, not a rule. The questions cover whether to keep the current rule, adopt provisions of the vacated 2024 rule, or use other approaches such as education. The FTC’s Negative Option Rule page lists that March 2026 request for comment as its most recent action. Anyone who needs the current position should check ftc.gov, because a proposed or final rule could follow.

The laws that still apply

The FTC explains that other federal tools address these practices:

• Section 5 of the FTC Act prohibits unfair or deceptive acts or practices, and has long been a main route for negative option cases. Courts have held that billing consumers without express informed consent can be unfair.
• The Restore Online Shoppers’ Confidence Act (ROSCA), enacted in 2010, covers online sales. It prohibits charging for goods or services sold on the internet through a negative option feature unless the marketer clearly and conspicuously discloses all material terms before obtaining billing information, obtains express informed consent before charging, and provides simple mechanisms to stop recurring charges.
• The Telemarketing Sales Rule and the Electronic Fund Transfer Act address particular aspects of negative option marketing, according to the FTC.

The FTC says ROSCA is the only federal law primarily designed for negative option marketing, but it is limited to transactions on the internet. The FTC also reports bringing negative option cases since the start of 2025 and receiving more than 90 complaints a day in 2025 on these practices.

FTC consumer advice for trials

The FTC’s consumer guidance suggests the following steps:

• Read the terms first. They should explain what is being agreed, how long the trial lasts, and how and when to cancel. If they cannot be found or understood, the FTC advises not signing up.
• Expect a charge if the trial is not cancelled in time, and be wary of offers that require shipping or other fees. “Free means free,” in the FTC’s wording.
• Uncheck pre-checked boxes, which may give permission for ongoing charges or extra products.
• Note the trial end date and check card and bank statements regularly.
• Be sceptical of ads. The FTC notes that affiliate marketers are paid per click, so some ads may be designed to make people click rather than explain the offer.
• If charged without agreement, follow the company’s cancellation steps, keep records, ask the card issuer to dispute the charge (a chargeback) promptly, and report the problem at ReportFraud.ftc.gov and to the state attorney general.

The general mechanics of trials are also explained in the free trials FAQ on this site.

Common questions

Is there a federal click-to-cancel rule in force?

The 2024 amendments were vacated in July 2025. The FTC has since asked for comment on whether to adopt a new rule, and the earlier 1973 rule, which covers prenotification plans, remains.

Does ROSCA cover phone or in-store sign-ups?

ROSCA applies to goods or services sold on the internet. Other laws, such as the Telemarketing Sales Rule, address other channels, as the FTC describes them.

The bottom line

In the US, there is currently no federal click-to-cancel rule in force: the 2024 amendments were vacated on 8 July 2025, and the FTC’s 2026 notice is only a request for comment. Online free trials are still regulated through section 5 of the FTC Act and ROSCA, which require clear disclosure of material terms, express informed consent and a simple way to stop recurring charges. Because the rules may change, the FTC’s own pages are the place to confirm the position before relying on it.

Sources

• Rule Concerning Use of Prenotification Negative Option Plans (Negative Option Rule); Advance Notice of Proposed Rulemaking; Request for Public Comment (ftc.gov)
• FTC Seeks Public Comment in Response to Advance Notice of Proposed Rulemaking Regarding Negative Option Marketing Practices (ftc.gov, 11 March 2026)
• Negative Option Rule (ftc.gov legal library)
• Getting In and Out of Free Trials, Auto-Renewals, and Negative Option Subscriptions (consumer.ftc.gov)