Click-to-cancel is out, but the FTC is still fighting subscription scams

It’s been almost a year since the 8th U.S. Circuit of Appeals overturned the FTC’s decision Click to cancel the rule. The rule was created to prevent fraud Opt-out practices. The click-to-cancel rule requires companies offering subscription services to update their cancellation processes so that canceling is as easy as signing up. However, the Appellate Division halted that in July 2025 because the FTC had not conducted a preliminary regulatory analysis — which is required for rules that could impact the economy by more than $1 million.

Since then, companies have not been required to follow any rule similar to the FTC’s initial proposal. However, federal and state legislatures are cracking down on companies that continue to use deceptive practices. For example, shutterstock Had to pay $35 million to settle allegations of illegal opt-in and opt-out practices. The FTC reports that Shutterstock charged customers without their consent, did not alert them to automatic renewal or cancellation fees, and made it difficult for them to cancel their subscriptions.

A Recent CNET poll It found that US adults spend more than $1,300 a year on subscriptions, and waste $252 on unused subscriptions. One way to reduce this cost is to cancel services you no longer want, but getting rid of them is not always easy. Some companies make it difficult for customers to cancel memberships. Here’s the latest and what you can do about it.

Research your state’s consumer protection laws

If you’re dealing with misleading subscription cancellation or renewal practices, start by checking your state laws that apply to consumer protection and subscriptions. I recommend checking out your state’s legislative portal and searching for terms related to relevant acts or laws.

For example, some states have automatic renewal laws that prevent the Company from automatically renewing your subscription without your consent. Some ARLs require clear renewal details, such as duration, recurring amount charged, cancellation policy, and how to cancel. Some state laws, e.g caalso requires renewal approval.

Maryland enacted a similar law in June 2026 to combat poor subscription renewal and cancellation rates. the law, HB0107requires companies that offer automatic renewals to allow Maryland residents to cancel their renewal in a cost-effective, timely, and easy manner before renewing. Connecticut, Massachusetts, and New York are among the states with automatic renewal laws.

The FTC is still shutting down scam subscription businesses

Although the FTC’s click-to-cancel rule no longer exists, there is another law in place since 2010 that the FTC uses to prevent companies from deceptive subscription practices.

the Online Shopper Trust Restoration Act It says businesses must list the price, billing date and cancellation policy before receiving your credit card details for a service (including a subscription). Before confirming your purchase, the Company must provide a way for you to confirm registration. The Company is also prohibited from sharing consumer information with third parties.

The most important part of ROSCA is Section 5 of the rule, which the FTC appears to be cracking down on the most – the rule is enforced by the FTC. Those who violate the law are subject to penalties. Under this rule, the Federal Trade Commission took action against… Uber and Chegas examples. Section 6 gives the state attorney general the authority to enforce the rule within their state as well.

Read more: Don’t keep paying for expensive streaming services. Here’s how to cancel it

Take these steps to stop fraudulent subscription scams

Even if you don’t think your server has violated state law, it’s best to take action to raise awareness and stop deceptive practices. Here are some steps you can take.

• File a complaint with your state’s attorney general. The FTC has a list of consumer protections, a complaint form, and contact information for each state’s attorney general on its website web page. You can also submit a file Online complaint With the Federal Trade Commission.
• If you’ve been charged for a subscription you canceled, didn’t sign up for, or are still being charged after you cancel, check to see if your credit card is protected against purchases or fraud to get a refund for the unauthorized purchase.
• If you have trouble canceling online, contact the company’s customer service to cancel. Regardless of how you cancel, be sure to receive a confirmation email and keep an eye on your credit card statement to avoid any future charges.
• Above all, make sure you read the fine print and ask any questions before signing up. Check your Manage Subscription or Account page settings before committing to any service to see how transparent the cancellation process is.