The FTC’s federal click-to-cancel rule was struck down in 2025, but enforcement did not stop. It moved to older federal statutes, a $35 million settlement, and the first city-level cancellation rule.
Short answer: the FTC’s Negative Option Rule is the federal standard for how you sell subscriptions, free-to-paid trials, and auto-renewals, and the core idea is simple: you cannot treat a customer’s silence as a “yes.” The headline “Click-to-Cancel” version of that rule was struck down by a federal appeals court
Short answer: in SaaS, keep your substantive commitments (functionality, features, support, and pricing) short, a year or less, because the model is built to change. The one thing that is genuinely meant to be time-bound is the customer’s subscription term itself. The SaaS term length question I get from vendors
Get started with a free initial consultation. Fill out the form below to connect with our experts today!