In 2025, U.S. consumers are gaining new protections through the Click-to-Cancel Rule and regulations targeting hidden or “junk” fees. These changes are reshaping how companies handle subscription services and pricing transparency, ensuring that consumers have clearer choices and fewer unfair charges.
The key takeaway is that subscriptions must now be as easy to cancel as they are to sign up. In addition, companies must disclose fees upfront, eliminating deceptive practices where unexpected charges appear only at checkout. These reforms aim to restore trust in digital markets and empower buyers.
Legal basis for the new rules
The Federal Trade Commission (FTC.gov) finalized the Click-to-Cancel Rule to combat unfair subscription practices. It requires businesses to provide simple, accessible cancellation options online. At the same time, federal and state regulators are cracking down on junk fees, which previously included hidden charges for services like event tickets, hotel stays, and rental cars.
State-by-state differences
While the FTC rule applies nationwide, some states add further protections. California already mandates clear cancellation options for recurring services. New York enforces transparency in ticket sales to combat excessive junk fees. Colorado recently passed laws targeting surprise fees in travel and hospitality, demonstrating that state-level protections can go beyond federal standards.
Real-world cases
Consumers have complained for years about streaming services that made it nearly impossible to cancel, often requiring phone calls or hidden menus. Lawsuits and FTC enforcement actions have forced major platforms to simplify processes. Similarly, high-profile investigations into junk fees at concert venues and hotels have resulted in multimillion-dollar settlements and industry-wide changes.
Step-by-step actions for consumers
1. Review all your recurring subscriptions and identify cancellation processes.
2. Use online cancellation options now required by law.
3. Check total pricing before completing online purchases to avoid hidden fees.
4. Report violations to the FTC or your state attorney general.
5. Seek refunds for undisclosed charges through official complaint channels.
Why this matters
Click-to-Cancel and junk fee regulations strengthen consumer rights by eliminating unfair hurdles and restoring transparency. These reforms help ensure that companies compete fairly, reduce household financial strain, and build confidence in online markets. For consumers, knowledge and enforcement are the keys to using these protections effectively.
FAQ
Q1: What is the Click-to-Cancel Rule?
A1: It requires companies to make canceling subscriptions as simple as signing up, typically through an online option.
Q2: What counts as junk fees?
A2: Junk fees include hidden or mandatory charges not disclosed upfront, such as ticket surcharges, hotel resort fees, or service charges on rentals.
Q3: Can states add extra protections beyond the FTC rule?
A3: Yes. States like California, New York, and Colorado have enacted stronger consumer safeguards on top of federal law.
Q4: How can I report a violation?
A4: Consumers can file complaints with the FTC (ftc.gov) or state attorney general offices, which investigate and enforce violations.
Q5: Will these rules apply to all industries?
A5: They cover most consumer-facing businesses, including digital subscriptions, entertainment, travel, and hospitality, where hidden fees and complex cancellations were common.