Podcast

Click to Cancel Rule for Small Business

July 29, 2025

Chasing Simple Marketing

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I'm  Amanda — simplicity-focused content marketing strategist.  I'm here to help you fit your marketing into your business.

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Click to Cancel Rule for Small Business Blogpost title image

Well, this feels a little silly. I’ve never recorded an introduction to an introduction before. But after I finished recording the podcast episode for the Click to Cancel Rule for Small Business, I found out something important: the FTC’s Click-to-Cancel Rule?
Potentially canceled. Maybe just on hold. Who knows.

Here’s the deal though — even if this specific ruling doesn’t move forward right now, I still believe the conversation we’re having here matters. The suggestions I shared in the episode? I’m moving forward with them in my own business either way. And honestly, I hope you’ll consider doing the same.

Because yes, compliance is important. Of course we want to follow the rules and make sure our businesses are legally protected. But beyond compliance? These kinds of changes can genuinely improve student and client satisfaction. And isn’t that what we’re really after? Serving people well.

So even if you’re a little confused right now (don’t worry, I’ll clear things up in a second), this conversation still feels timely. Helpful. Worth having.

Let’s dig in.

Links and Resources Mentioned in This Episode:

Picture This: You’re Trying to Cancel… And You Can’t

You sign up for a new membership. There’s a free trial. The onboarding is smooth. You’re feeling good.

But when you’re ready to cancel?
You’re redirected to menu after menu. A chatbot pops up and won’t give you a straight answer. You can’t figure out how to stop your membership — and that recurring payment.

Frustrating, right?

That feeling? That’s exactly what the FTC’s now possibly-paused Click-to-Cancel Rule was trying to prevent.

And honestly, it’s something we as small business owners should be trying to prevent too — not because we’re scared of fines, but because it’s just good business.

What Was the Click-to-Cancel Rule All About?

The FTC’s Click-to-Cancel Rule was an update to their Negative Option Rule. In plain English? If someone could sign up for something online easily, they should be able to cancel it just as easily.

The rule was supposed to go into effect July 14, 2025. Businesses who didn’t comply could’ve faced penalties of up to $53,000 per violation.

But here’s the thing: even if this rule doesn’t go forward, the principle behind it still matters for us as educators, course creators, and membership providers.

It’s about trust. Transparency. Building a reputation people feel good about referring to their friends.

We’re not Comcast. We don’t want to be Comcast. The Click to Cancel Rule for Small Business is still important even with the ruling being blocked.

We want satisfied students and happy alumni, not frustrated people who feel trapped. Because happy alumni give testimonials. They tell their friends. They come back for more. Frustrated people just quietly unsubscribe… or not-so-quietly post about you on social.

What This Means For Your Business (Even If The Rule Is On Pause)

Whether or not the FTC enforces this tomorrow, next year, or never… here’s why the Click To Cancel Rule for Small Business matters:

1. It Protects Your Reputation

Clear, easy cancellation builds trust. Full stop.

2. It Improves Customer Experience

Satisfied students are more likely to refer, re-enroll, and leave glowing feedback.

3. It Aligns With Integrity

We preach ethical marketing. Let’s practice it in how we operate behind the scenes too.

4 Simple Steps to Make Cancellation Easier (and Build Trust While You’re At It)

If you have:

  • A membership with recurring billing
  • A course with a payment plan
  • A free trial that auto-renews
    …this is for you.

Step 1: Audit Your Sign-Up and Cancellation Flow

Go through your own process like a student would. Sign up. Then cancel.

Ask yourself:

  • Is the cancellation process just as easy as signing up?
  • Can it be done from the same interface?
  • Does it take the same number of clicks?

If not, it’s time for a tweak.

Step 2: Boost Transparency at Sign-Up

Be crystal clear about:

  • Charges
  • Trial dates
  • Renewal frequency

Make sure this info is front and center next to the consent button.

What I’m doing: I already have a “terms and conditions” checkbox at checkout. But I’m adding a simple, clear explanation about renewals and billing right underneath that checkbox. No one should have to dig to find this info.

Step 3: Simplify Cancellation

Your dashboard should have:

  • A clearly visible cancel button
  • Or at minimum, step-by-step instructions that are easy to follow

If people are emailing you asking how to cancel… it’s probably not as clear as you think. (Speaking from experience here.)

Step 4: Maintain Proof of Consent and Immediate Cancellation

Keep proof of consent for three years.
Make sure any cancellation action immediately stops billing.

Double-check your systems. Automate where possible. Protect yourself.

This Isn’t Just About Compliance — It’s About Care

Look, I get it. This feels like “one more thing” on your plate.

But this isn’t just about staying ahead of potential regulations. It’s about showing your people that you respect them. That you trust them to make decisions. That you’re not trying to sneakily hold onto their payments.

In a world where trust is hard to earn, this small tweak to your systems could make a big difference in how your brand is perceived.

And that alignment — between how we market and how we operate — it matters. It’s how we build businesses with longevity.

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