Understanding the FTC’s Click-to-Cancel Rule: Compliance Requirements for Subscription Services

Sarah A. Milunski
Sarah A. Milunski
Lewis Rice LLC

Sarah A. Milunski serves as Practice Group Leader for the Medical Negligence practice group.

Melissa G. Powers
Melissa G. Powers
Lewis Rice LLC

Melissa G. Powers is an associate practicing general business and transactional law in the Corporate Department of Lewis Rice.

On-Demand: February 27, 2025

2 hour CLE

Tuition: $195.00
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Program Summary

The FTC recently finalized its “Click-to-Cancel” rule that will significantly impact companies that use negative option or automatic renewal features. At a time when negative option and automatic renewal features are commonly found in the form of club memberships, subscriptions, and scheduled refill programs, compliance with the rule will be important. Companies that utilize these features (even in business-to-business transactions) will need to review their current subscription practices, particularly their disclosures and consent and cancellation mechanisms, against the rule’s requirements. Participants in this CLE program will gain insights into compliance with the rule, as well as the broader landscape of these laws, including the legal challenges they face.

Key topics to be discussed:

  • Material Provisions of the Click-to-Cancel Rule
  • Practical Steps for Compliance
  • State Law Considerations
  • Legal Challenges to the Click-to-Cancel Rule

Closed-captioning available

Speakers

Sarah A. Milunski_myLawCLESarah A. Milunski | Lewis Rice LLC

Sarah A. Milunski serves as Practice Group Leader for the Medical Negligence practice group. Sarah is an experienced litigator handling cases involving Missouri’s Franchise Act, consumer protection statutes, contract and property disputes, municipal litigation, and personal injury in both federal and state courts in Missouri and Illinois. She has specific experience in the medical laboratory, bicycle manufacture, and public utility industries, including personal injury, patent infringement, and contract disputes. Sarah regularly develops the case strategies and legal arguments that are relied upon at trial in some of the Firm’s most complex cases. No stranger to the courtroom, her recent trials have involved breach of contract and municipal law, both of which resulted in positive outcomes for her clients. Sarah’s subject-matter knowledge runs deep for every case she takes on; not only does she utilize available resources to thoroughly understand the legal issue at hand, she also familiarizes herself with her clients’ business so she can provide thoughtful and practical advice that is focused on each client’s individual goals. Whether in the courtroom advocating or in the office counseling, Sarah brings a focus and passion to bear to give sound advice and achieve outstanding results for her clients.

Sarah was selected for inclusion in Missouri & Kansas Rising Stars® in 2018-2022 as well as was in Best Lawyers® Ones to Watch for 2021-2025.

During law school, Sarah served as the Childress Lecture managing editor of the Saint Louis University Law Journal.

Outside the office, Sarah enjoys singing with the St. Louis Chamber Chorus and at her parish, St. Margaret of Scotland.

 

Melissa G. Powers_myLawCLEMelissa G. Powers | Lewis Rice LLC

Melissa G. Powers is an associate practicing general business and transactional law in the Corporate Department of Lewis Rice.

In her cybersecurity and data privacy practice, Melissa is dedicated to safeguarding organizations’ data by providing strategic counsel that addresses evolving security threats and ensures compliance with industry regulations. Melissa helps businesses mitigate risks associated with collecting and sharing data, advises on best practices for data management and incident preparedness, and provides support when cyber incidents occur. Her experience also includes designing and implementing a variety of privacy and security programs that help companies comply with evolving global regulations.

In addition, Melissa works with clients on mergers and acquisitions, negotiating deal documents, conducting due diligence reviews, and managing data room administration. In her advertising, promotions and social media practice, she counsels on contests and sweepstakes, advertising campaigns, rights of publicity, privacy, trademarks, and intellectual property.

Melissa is a member of the Firm’s Recruiting Committee.

Agenda

I. The Click-to-Cancel Rule | 2:00pm – 2:20pm

  • Background and evolution of the Click-to-Cancel rule
  • Key objectives of the rule
  • Negative option offers and their implications

II. Scope and Applicability of the Rule | 2:20pm – 2:40pm

  • Definition of negative option features
  • Applicability to consumer contracts vs. business-to-business contracts
  • Relationship to, and impact on, existing state laws and potential preemption

III. Key Provisions of the Click-to-Cancel Rule | 2:40pm – 3:00pm

  • Clear and conspicuous material disclosures
  • Requirements for obtaining express informed consent
  • Simplified cancellation process and immediate cancellations
  • Renewal reminders and notices of material/fee changes

Break | 3:00pm – 3:10pm

IV. Compliance Pitfalls and Legal Challenges | 3:10pm – 3:25pm

  • Common pitfalls in compliance
  • Legal risks and penalties for noncompliance
  • Legal challenges to the Click-to-Cancel rule
  • Examples of enforcement actions and penalties

V. Practical Steps for Compliance | 3:25pm – 3:40pm

  • Reviewing and updating current practices
  • Enhancing disclosure and consent processes
  • Simplifying cancellation procedures
  • Training staff on compliance requirements

VI. Adapting Marketing and Sales Practices | 3:40pm – 3:55pm

  • Strategies for aligning marketing practices with the new rule
  • Addressing ambiguities in the definition of “material fact”

VII. Future Considerations and Ongoing Compliance | 3:55pm – 4:10pm

  • Monitoring changes in regulations and enforcement
  • Best practices for ongoing compliance
  • Preparing for potential legal challenges and updates

Credits

Alaska

Approved for CLE Credits
2 General

Our programs are CLE-eligible through Alaska’s recognition of multi-jurisdictional reciprocity.
Alabama

Approved for Self-Study Credits
2 General

Arkansas

Approved for CLE Credits
2 General

Arizona

Approved for CLE Credits
2 General

California

Approved for CLE Credits
2 General

Colorado

Pending CLE Approval
2 General

Connecticut

Approved for CLE Credits
2 General

District of Columbia

No MCLE Required
2 CLE Hours

Delaware

Pending CLE Approval
2 General

Florida

Approved via Attorney Submission
2.5 General

Receive CLE credit in Florida via attorney submission.
Georgia

Approved for CLE Credits
2 General

Hawaii

Approved for CLE Credits
2.4 General

Iowa

Pending CLE Approval
2 General

Idaho

Pending CLE Approval
2 General

Illinois

Approved for Self-Study Credits
2 General

Indiana

Approved for Self-Study Credits
2 General

Kansas

Pending CLE Approval
2 Substantive

Kentucky

Pending CLE Approval
2 General

Louisiana

Pending CLE Approval
2 General

Massachusetts

No MCLE Required
2 CLE Hours

Maryland

No MCLE Required
2 CLE Hours

Maine

Pending CLE Approval
2 General

Michigan

No MCLE Required
2 CLE Hours

Minnesota

Approved for Self-Study Credits
2 General

Missouri

Approved for CLE Credits
2.4 General

Mississippi

Pending CLE Approval
2 General

Montana

Pending CLE Approval
2 General

North Carolina

Pending CLE Approval
2 General

North Dakota

Approved for CLE Credits
2 General

Our programs are CLE-eligible through North Dakota’s recognition of multi-jurisdictional reciprocity. Section 1, Policy 1.14
Nebraska

Pending CLE Approval
2 General

myLawCLE reports attendance to Nebraska on each attorney’s behalf for all programs. Please do not self-report.
New Hampshire

Approved for CLE Credits
120 General Minutes

As of July 1, 2014, the NHMCLE Board no longer provides pre- or post-approval of courses. Attendees must self-determine whether a program is eligible for credit, and self-report their attendance online at www.nhbar.org, based on qualification provisions of Rule 53.
New Jersey

Approved for CLE Credits
2.4 General

Our programs are CLE-eligible through New Jersey’s recognition of multi-jurisdictional reciprocity, except for the courses required under BCLE Reg. 201:2
New Mexico

Approved for Self-Study Credits
2 General

Nevada

Approved for Self-Study Credits
2 General

New York

Approved for CLE Credits
2.4 General

Our programs are CLE-eligible through New York’s Approved Jurisdiction Group “B”.
Ohio

Approved for Self-Study Credits
2 General

Oklahoma

Pending CLE Approval
2.5 General

Oregon

Approved for Self-Study Credits
2 General

Pennsylvania

Approved for Self-Study Credits
2 General

Rhode Island

Pending CLE Approval
2.5 General

South Carolina

Pending CLE Approval
2 General

South Dakota

No MCLE Required
2 CLE Hours

Tennessee

Approved for Self-Study Credits
2 General

Texas

Approved for CLE Credits
2 General

Utah

Pending CLE Approval
2 General

Virginia

Not Eligible
2 General Hours

Vermont

Approved for CLE Credits
2 General

Washington

Approved via Attorney Submission
2 Law & Legal

Receive CLE credit in Washington via Attorney Submission. myLawCLE will supply Washington state attorneys with instructions on how to gain credit.
Wisconsin

Approved for Self-Study Credits
2 General

West Virginia

Pending CLE Approval
2.4 General

Wyoming

Pending CLE Approval
2 General

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