“Click-to-Cancel Rule” The FTC announced the “Click-to-Cancel Rule” on October 16, 2024. The Rule applies to transactions that involve negative option features—features that consider a consumer’s inaction as acceptance of a product or service, like automatic renewals and free trial subscriptions. The Rule requires that sellers provide the clear and conspicuous disclosure of a consumer’s right to cancel or opt-out of such agreements. The Rule also requires that sellers (1) obtain a consumer’s express consent before charging them, and (2) provide a simple, easy to locate cancellation mechanism. In July 2025, the 8th Circuit struck down the Click-to-Cancel Rule. Despite the ruling, the FTC has signaled a continued interest in the spirit of the rule. Several state automatic renewal laws, including Minnesota, mimic the former rule’s simple cancellation and disclosure requirements.
Deceptive Mail Prevention and Enforcement Act (DMPEA)
Sweepstakes and other contests are governed by the Deceptive Mail Prevention and Enforcement Act of 1999 . The Act establishes opt-out procedures and a number of required disclosures for sweepstakes or contest mailings, as well as mailings of facsimile checks and mailings made to resemble government documents. Failure to comply with the Act can lead to an investigation by the U.S. Postal Service, civil penalties, and a mail-stop order. Sweepstakes and contests are also covered by various state laws and any company looking into sweepstakes promotions should be sure to comply with all relevant state laws and regulations. The Minnesota Attorney General’s Office has a publication explaining the do’s and don’ts of running a sweepstakes and similar promotions in Minnesota (See Minn. Stat § 325F.755 and Minnesota Attorney General Sweepstakes Scams.
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