Why Your Cancellation System Might Be Costing You
Understanding the FTC’s “Click-to-Cancel” Rule
The Federal Trade Commission (FTC) recently introduced the Click-to-Cancel rule to address ongoing issues with misleading subscription practices.
Originally set to take effect on May 14, 2025, the FTC announced on May 9, 2025, that it would postpone enforcement by 60 days, moving the new compliance deadline to July 14, 2025. This decision was made to provide businesses with additional time to align their systems with the new requirements.
This rule mandates that the cancellation process must be as simple and accessible as the sign-up process. If your subscription system doesn’t comply, your business could face fines of up to $51,744 per violation.
But compliance isn’t just about avoiding hefty fines — it’s about building trust and maintaining transparent business practices.
As a solopreneur, coach, or creator, it’s crucial to ensure that your systems not only meet regulatory standards but also respect your clients’ autonomy.
The Problem with Current Subscription Systems
Many current subscription and cancellation systems are designed to be sticky — making it easy to join but difficult to leave.
For example, signing up for a free trial might take just a click, but canceling often involves finding hidden links, navigating multiple confirmation pages, or even being forced to call a representative.
These predatory practices erode client trust and damage your brand’s reputation. Major corporations have often set the wrong example by designing intentionally complex cancellation flows, making it seem like a standard practice. Unfortunately, small businesses sometimes replicate these methods, believing they are industry best practices.
During our recent #ClarityTrip™ live working session, we explored how these flawed systems create friction that damages client relationships.
Building better systems means prioritizing clarity, transparency, and customer respect — not just avoiding compliance issues.
What the Click-to-Cancel Rule Demands
The FTC’s Click-to-Cancel rule makes one thing clear: your cancellation process must be just as simple as signing up, using the same medium. If a customer signs up online, they must also be able to cancel online — no phone calls, no manual forms, and no added steps.
The rule also requires clear and conspicuous disclosures before billing. This includes transparent information about recurring charges, how to cancel, and any applicable fees. It’s no longer acceptable to bury these details in fine print or behind multiple clicks.
Additionally, the rule mandates affirmative consent, meaning that consumers must explicitly agree to recurring charges through a clear and separate acknowledgment prior to providing billing information.
Proper recordkeeping is also essential, as businesses must maintain proof of consent for at least three years or one year after cancellation, whichever is longer.
During our #ClarityTrip™ working session, we emphasized that meeting these requirements isn’t just about staying compliant — it’s about creating systems that are client-friendly and legally sound.
Building Systems That Align with the FTC Rule
To ensure your business complies with the new rule, start by auditing your current subscription and cancellation workflows. Identify areas where your systems might be too complex or unintuitive. During our session, participants discovered that they often underestimated how difficult their cancellation processes had become.
Next, simplify your cancellation methods. Use platforms that support easy and accessible cancellation. Make sure your clients can easily find the cancellation option, and that it mirrors the ease of signing up.
Automate recordkeeping and consent management using tools that make this seamless and easy for you. These platforms can automatically store consent records and allow you to export this data for your own records, reducing the risk of missing documentation if you’re ever audited.
By aligning your systems with the Click-to-Cancel rule, you’re not only staying legally compliant but also building a more user-friendly business infrastructure.
Clients appreciate clarity — and when your systems work seamlessly, they’re more likely to stay engaged.
The Ethics of Compliance: Building Trust Through Simplicity
At its core, the Click-to-Cancel rule reflects an opportunity to shift our perspective on compliance towards consumer rights and business ethics.
Instead of viewing compliance as a burden, see it as an opportunity to build client-centric systems that foster trust and loyalty.
Compliance shouldn’t be about checking a box or avoiding penalties. It’s about showing your clients that you respect their choices and their time. Simplifying your subscription systems not only reduces the risk of fines but also strengthens your brand’s reputation.
As we discussed during the live #ClarityTrip™ working session, ethical business practices go beyond regulation — they’re about doing the right thing even when it’s not the easy thing. By proactively making your systems more transparent and accessible, you position your business as both trustworthy and forward-thinking.
Action Steps for Solopreneurs: Getting Compliant
Don’t wait until the deadline to start fixing your systems. Here are practical steps to ensure compliance and build client trust:
- Conduct a Systems Audit: Identify weak points in your current cancellation and billing processes.
- Update Your Disclosures: Clearly present all material terms before obtaining billing information.
- Implement Consent Mechanisms: Make sure clients explicitly agree to recurring charges and all the terms that govern them.
- Simplify Cancellation Methods: Match the ease of canceling to the ease of signing up.
- Automate Recordkeeping: Use reliable tools to maintain proof of consent and compliance data.
By taking these actions now, you’re not just avoiding penalties — you’re building a business that values clarity, respect, and client satisfaction.
Conclusion: Compliance as a Business Strategy
The FTC’s Click-to-Cancel rule challenges businesses to rethink how they approach subscriptions and client interactions. Instead of resisting these changes, use them to build stronger, more transparent systems that clients appreciate.
Compliance shouldn’t feel like a hurdle. It’s an opportunity to make your business practices more honest, clear, and client-centered. By prioritizing transparency, you build long-term relationships that go beyond transactions.
Let’s be the businesses that prioritize clarity, respect, and human-centered practices — not just because it’s the law, but because it’s the right thing to do.
Let’s fix what’s failing — together.
Take Action Before the July 14 Deadline
With the enforcement date now set for July 14, 2025, you have a valuable window to assess and improve your systems.
To support you in this process, I’m offering a 20% discount on The Click-to-Cancel Systems Fix™ until May 31, 2025.
Use code DEADLINE20 at checkout to claim your discount.
Ready to Fix Your Systems?
Want a step-by-step guide to making your cancellation flow compliant and client-friendly?
Get The Click-to-Cancel Systems Fix™— complete with the workbook, checklists, and practical tools to get your systems in shape.
This bundle contains:
- Comprehensive workbook with compliance checklists and templates to audit and update your subscription flow for FTC Click-to-Cancel compliance
- Practical tools and resources to simplify your cancellation process, enhance your business systems, and reduce friction in your business infrastructure
- Exclusive access to the complete replay and recap with insights from the live #ClarityTrip™ working session on FTC Click-to-Cancel compliance
Don’t just react to the new rule — build a system that works for you and your clients. Let’s make compliance part of your business backbone.
Because compliance doesn’t have to feel overwhelming.
