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.

Live Video-Broadcast: February 27, 2025
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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

Date / Time: February 27, 2025

  • 2:00 pm – 4:10 pm Eastern
  • 1:00 pm – 3:10 pm Central
  • 12:00 pm – 2:10 pm Mountain
  • 11:00 am – 1:10 pm Pacific

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

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