The Federal Trade Commission (FTC) has decided to delay the enforcement of most parts of its amended Negative Option Rule by 60 days. The compliance deadline is now moved from May 14 to July 14, 2025. This rule introduces new requirements for businesses offering subscription-based services, focusing on consent, disclosure, and cancellation obligations.
The FTC clarified that this decision is an enforcement policy choice rather than a legal stay. The delay aims to provide businesses with more time due to “the complexity of compliance.”
Although the rule remains in effect, amendments prohibiting misrepresentations in selling goods or services with a negative-option feature have been enforceable since January 19, 2025.
This postponement might allow the Eighth Circuit Court to issue a decision regarding a legal challenge against the rule before enforcement begins. Several industry groups have brought this challenge forward. A court ruling could address key questions about the rule’s legality.
The new July 14 enforcement date aligns closely with California’s updated Automatic Renewal Law (ARL), which takes effect on July 1, 2025. Businesses operating nationally will need to synchronize their compliance strategies across federal and state regulations.
According to the FTC’s statement: “[s]tarting July 14, 2025, regulated entities must be in compliance with the whole of the Rule because the Commission will begin enforcing it.” The commission also expressed openness to amending the rule if enforcement reveals any issues.
As Congress has not introduced any resolution against it under the Congressional Review Act, nullification seems unlikely. However, businesses should keep an eye on proceedings in the Eighth Circuit as they may influence regulatory strategies.
For further information about how these rules may impact businesses, contact Cooley special counsel Brett Weinstein or other members of their team.
This content serves informational purposes only and does not establish an attorney-client relationship with Cooley LLP or related entities. It should not replace professional legal advice from qualified attorneys licensed in your jurisdiction.
