Click-to-Cancel
Stay Compliant
Simplify Cancellation Flows and Boost Retention with ChurNO
In 2025, new U.S. regulations are transforming how subscription-based apps and services handle cancellations. The Federal Trade Commission’s (FTC) “Click-to-Cancel” Rule, effective as of July 14, 2025, mandates that businesses make canceling subscriptions as easy as signing up.
At ChurNO, we help you comply with these regulations while turning cancellations into opportunities to retain customers and build trust.
Understanding the FTC’s “Click-to-Cancel” Rule
The FTC’s updated Negative Option Rule, finalized on October 16, 2024, aims to protect consumers by ensuring fair and transparent subscription practices. This rule applies to all businesses offering subscriptions, memberships, or negative option features - whether online, in-app, or in-person.
Here’s what you need to know to stay compliant:
. Simple Cancellation Process: Cancellation must be as easy as the sign-up process. If a customer subscribed through your app with a single click, they must be able to cancel with a similar level of ease
. Same Medium Requirement: Consumers must be able to cancel in the same medium they used to sign up (e.g., in-app cancellations for app-based subscriptions)
. Clear Disclosures: Businesses must clearly disclose material terms (e.g., renewal intervals, free trial expirations) before obtaining billing information
. Express Informed Consent: You must obtain standalone consent for the negative option feature (e.g., a separate checkbox or button) and maintain verification of consent for at least three years.
. No Misrepresentations: Any misleading claims about the subscription or underlying service are prohibited, effective December 16, 2024.
. Compliance Deadline: Most provisions take effect on July 14, 2025, giving businesses until then to update their cancellation processes (misrepresentation provisions are effective earlier, on December 16, 2024)
Non-compliance can lead to significant penalties, with the FTC able to impose fines up to $51,744 per violation. Additionally, state laws, such as California’s strict Automatic Renewal Law (ARL), may impose even tougher requirements, like immediate and exclusively online cancellation for online sign-ups.
Why Compliance Matters for Your App
The “Click-to-Cancel” Rule reflects a growing focus on consumer protection, driven by frustration with cumbersome cancellation processes. However, businesses face challenges: making cancellations too easy could increase churn, while failing to comply risks legal action and loss of customer trust.
That’s where ChurNO comes in. Our innovative cancellation flow solution ensures your app meets federal and state regulations while optimizing the user experience to reduce churn and retain valuable customers.
How ChurNO Helps You Comply and Thrive
ChurNO is a churn-busting cancellation flow platform designed to help subscription-based apps stay compliant with the FTC’s “Click-to-Cancel” Rule and state regulations like California’s ARL.
Here’s how we make compliance simple and effective:
. Seamless In-App Cancellation: ChurNO integrates directly into your app, providing a one-click cancellation option that meets the FTC’s “same medium” and simplicity requirements. Canceling is as easy as signing up, keeping you compliant
. Smart Retention Strategies: Our AI-powered cancellation flows gather actionable insights and offer personalized retention incentives (e.g., discounts, pauses, or trial extensions) to encourage users to stay, reducing churn without violating regulations
. Clear Disclosures & Consent: ChurNO ensures all material terms are presented clearly and obtains standalone consent for negative option features, with built-in tools to store consent records for the required three years
. State-Specific Compliance: We tailor cancellation flows to meet stricter state laws, like California’s requirement for immediate, exclusively online cancellations, ensuring you’re covered nationwide
. Robust Reporting & A/B Testing: Track cancellation trends and test retention strategies with ChurNO’s analytics, helping you refine your approach while maintaining compliance
. Quick Integration: Connect ChurNO to your subscription billing platform (e.g., Stripe) with minimal code, getting you compliant in days, not months
Trusted by leading brands, ChurNO transforms cancellations into opportunities to retain customers and build loyalty, all while ensuring compliance with the latest regulations
The Risks of Non-Compliance
Failing to comply with the FTC’s “Click-to-Cancel” Rule or state ARLs can lead to:
. Civil Penalties: Up to $51,744 per violation from the FTC, plus potential consumer redress
. Consumer Lawsuits: States like California have seen multi-million-dollar settlements for ARL violations, targeting brands like HelloFresh and the New York Times
. Reputation Damage: Cumbersome cancellation processes erode trust, as seen in consumer complaints about “accessibility nightmares” for deaf and hard-of-hearing users
. Increased Churn: Without a strategic cancellation flow, easy cancellations could lead to higher subscriber loss
With ChurNO, you can avoid these risks and turn compliance into a competitive advantage.
Why Choose ChurNO?
. Compliance Made Easy: Meet FTC and state requirements with a fully compliant, user-friendly cancellation flow
. Churn Reduction: Leverage AI-driven insights and retention offers to save subscribers at the point of cancellation
. Fast Setup: Integrate with your app and billing platform quickly, ensuring compliance by the July 14, 2025 deadline
. Trusted by Leaders: Join other brands who rely on our technology to reduce churn and stay compliant
. Free Compliance Audit: Not sure where to start? Sign up for a free one-on-one consultation with our cancellation experts to assess your app’s compliance needs
Get Started with ChurNO Today
The FTC’s “Click-to-Cancel” Rule is a game-changer for subscription-based apps, but it doesn’t have to be a challenge. With ChurNO, you can comply with federal and state regulations, reduce churn, and enhance customer trust - all in one powerful platform.
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Let our experts guide you through the new regulations and show you how ChurNO can transform your cancellation flow.
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Stay compliant, retain customers, and build trust with ChurNO - your partner in navigating the subscription economy.