How to Comply With FTC's "Click-to-Cancel" Rule

Written by
John Doe
Published on
December 18, 2024
Grow Your Business with LiveX AI
Book a Demo

Table of Contents

Executive Summary

  • Introduction of New FTC Rule—The Federal Trade Commission has announced a "click-to-cancel" rule to simplify the cancellation of recurring subscriptions, modernizing the 1973 Negative Option Rule for today's digital economy.
  • Compliance Imperative for Businesses—With increasing consumer complaints, businesses must align with FTC regulations to avoid penalties and ensure customer loyalty by adhering to the updated rule.
  • Key Compliance Steps—Ensure truthfulness in advertising, implement clear disclosures, obtain explicit consent before billing, and provide simple cancellation mechanisms to meet the new rule's requirements.
  • Additional Best Practices—Send renewal reminders, train customer service teams, maintain accurate records, and audit programs regularly to close compliance gaps and enhance customer experience.

Adhering to the FTC's new "click-to-cancel" rule not only ensures regulatory compliance but also builds customer trust, improves retention, and can potentially lead to business growth through increased loyalty.

The Federal Trade Commission (FTC) recently announced a new "click-to-cancel" rule to make it easier for consumers to cancel recurring subscriptions and memberships. This rule is part of the FTC's efforts to modernize its 1973 Negative Option Rule for the digital economy, where businesses can easily sign up customers for recurring payments.

With the number of consumer complaints about negative option marketing steadily increasing, it's crucial for subscription-based businesses to ensure they are complying with FTC regulations. By proactively aligning your practices with the new rule, you can avoid potential penalties and foster long-term customer loyalty.

Steps to Ensure FTC Compliance for Businesses

  1. Ensure Truthfulness in Advertising Claims
    The FTC prohibits misrepresentations about any material fact regarding negative option features or the underlying product or service. This includes claims about cost, cancellation policies, product efficacy, and more.some text
    • Clearly state any upfront fees, recurring charges, or price increases rather than hiding them in fine print.
  2. Implement Clear and Conspicuous Disclosures
    The new rule mandates that businesses provide transparent, easy-to-understand disclosures of all material subscription terms prior to obtaining billing information.some text
    • Present key information like renewal frequencies, cancellation instructions, and total costs prominently — not buried in lengthy terms of service.
    • Use plain language and visual cues to draw attention to important details.
  3. Obtain Express Informed Consent Before Billing
    Subscription sign-ups now require affirmative consent from customers, obtained separately from other parts of the transaction.some text
    • Use checkboxes, digital signature fields, or similar mechanisms for customers to agree to subscription terms explicitly.
    • Avoid pre-checked boxes or relying on passive consent.
  4. Provide Simple Cancellation Mechanisms
    The core requirement of the rule is that cancellation processes must be at least as easy as the sign-up process.some text
    • If customers can subscribe online, they must also be able to cancel online without additional barriers like mandatory phone calls.
    • Streamline your user interface with clearly labeled, prominent cancellation options.

Additional Best Practices for FTC Compliance

  • Send customers timely reminders before renewal billing, giving them an opportunity to cancel.
  • Train customer service teams on compliant cancellation and retention practices.
  • Maintain accurate records of customer sign-up details, consent, and cancellation requests.
  • Regularly audit negative option programs and user flows for potential compliance gaps.

Talk to Us for a Better Retention Strategy

Aligning your subscription practices with FTC regulations not only ensures compliance but also builds trust with customers. At LiveX AI, we specialize in helping businesses reduce churn and implement customer-centric retention strategies — all while prioritizing regulatory compliance to keep your business protected and your customers satisfied.

Talk to us today and discover how to improve customer retention while staying compliant.

Frequently Asked Questions (FAQs)

1. What should I do if my subscription business is not currently compliant with the new "Click-to-Cancel" rule?
If your business isn’t compliant with the new "Click-to-Cancel" rule, taking action promptly is crucial. You have 180 days from the date the rule is published in the Federal Register to align your processes with its consent and cancellation provisions and 60 days for the misrepresentation prohibitions (unless the rule is blocked).

Here are the steps you should take:

  1. Review Your Cancellation Processes: Assess your cancellation procedures to identify any areas needing improvement.
  2. Implement a User-Friendly Interface: Create a cancellation interface that allows customers to cancel their subscriptions easily and immediately.
  3. Consult Legal Counsel: If necessary, seek legal advice to ensure your subscription model complies with FTC regulations.
  4. Leverage Tools for Insights: Consider using solutions like LiveX AI ChurnControl to gain insights into customer behavior and enhance your cancellation process.

By taking these steps, you can simultaneously ensure compliance and improve your customer experience.

2. How will the "Click-to-Cancel" rule impact subscription pricing models?
While the rule focuses on the cancellation process, it could indirectly affect pricing models. Businesses may need to reconsider pricing strategies to remain competitive in a landscape that prioritizes transparency and customer autonomy. Offering flexible pricing options and clear value propositions can help retain customers who might otherwise consider canceling.

3. Will the FTC's new rule affect my marketing strategies?
Yes, the "Click-to-Cancel" rule may necessitate a shift in your marketing strategies. Emphasizing customer-centric messaging that highlights transparency and trust can resonate with potential subscribers. Marketing campaigns should reflect your commitment to an easy cancellation process, helping build brand credibility and customer loyalty.

4. How can I measure the impact of the "Click-to-Cancel" rule on my customer retention rates?
To gauge the impact, analyze key metrics such as cancellation rates, customer feedback, and Net Promoter Scores (NPS) before and after implementing the changes. Analytics tools or customer engagement platforms can provide valuable insights into how the new cancellation process affects customer sentiment and retention. LiveX AI ChurnControl can help you monitor these metrics, helping you make data-driven decisions to improve customer experience.

5. Are there any best practices for handling customer feedback during the cancellation process?
Absolutely! It's important to approach customer feedback with empathy and openness. Create an optional feedback form during the cancellation process, allowing customers to share their reasons for leaving. Use this information to identify trends and areas for improvement. Addressing customer concerns can also provide opportunities to win back former subscribers by showcasing the changes you've made in response to their feedback.

6. What other resources are available to understand FTC regulations on subscriptions?

For detailed information on FTC regulations related to subscriptions, the FTC's official website offers comprehensive resources, including guides and FAQs focused on subscription services and consumer protections. Here are links to key resources:

However, it's essential to remember that while reading these resources is helpful for your business, consulting with legal experts in consumer law is always the best course of action. They can provide tailored advice and clarify any specific concerns regarding compliance.

Please note that we are not legal experts, and all information in this blog should not be considered legal advice.

__wf_reserved_inherit

‍

FAQs

Find answers to commonly asked questions about our AI Support Agent.

Contact Us
What is LiveX AI?

LiveX AI is the human-like AI agents that help B2C and DTC businesses improve customer retention, drive revenue growth, and reduce support costs. Designed to feel like a seamless extension of your brand, LiveX AI agents engage users across chat, voice, email, and search—resolving issues, boosting conversions, and proactively preventing churn. With AI agents that can improve customer retention by up to 35%, achieve self-service rates of up to 90%, and deliver actionable insights to enhance the customer experience, LiveX empowers businesses to scale efficiently while increasing loyalty and lifetime value across every channel.

‍

What is an AI Agent, and how does LiveX AI fit this role?

An AI Agent is an intelligent, human-like virtual assistant powered by Generative AI that can both communicate naturally and take action on behalf of customers. Unlike traditional chatbots, AI agents are agentic—they can perform real tasks such as processing cancellations, updating accounts, recovering carts, and guiding purchasing decisions. This creates seamless, proactive experiences that improve customer retention and satisfaction.

‍

LiveX AI is built to be the best fit for this role.

Our human-like AI agents help B2C and DTC brands improve retention, drive revenue, and reduce support costs by engaging customers across chat, voice, email, and search. By combining empathetic communication with real action, LiveX AI empowers businesses to build loyalty, prevent churn, and grow—without adding headcount.

‍

Can LiveX AI be used as an AI customer support tool?

Absolutely. LiveX AI provides human-like AI agents that help B2C and DTC businesses improve customer retention, boost revenue, and scale support—turning customer experience into a driver of growth.

‍

By delivering fast, personalized assistance across chat, voice, search, and QR, LiveX AI resolves issues in real time, reduces friction, and keeps customers engaged.

Unlike traditional AI support tools, LiveX AI goes beyond answering questions—it proactively prevents churn, recovers revenue, and builds loyalty. Businesses using LiveX have achieved up to 35% improvement in retention and 90%+ self-service resolution rates, helping them grow while reducing costs.

‍

What if I sell through a 3rd party? Can LiveX AI help me?

Absolutely. LiveX AI helps businesses improve customer retention, build loyalty, and drive growth—even when you don’t control the point of sale.

‍

With QR codes placed on packaging, inserts, or marketing materials, you can create a direct connection to human-like AI agents that engage customers instantly through chat, voice, or search.

‍

Whether it’s providing product education, troubleshooting, or post-purchase support, LiveX AI ensures every customer receives fast, personalized assistance—turning one-time buyers into repeat customers.

‍

By owning the post-purchase experience, you can reduce returns, improve satisfaction, and strengthen retention, no matter where the initial sale happens.

Is LiveX AI integrated with popular leading platforms?

Yes. LiveX AI seamlessly integrates with the platforms your business already relies on—making it easy to deploy human-like AI agents without disrupting your existing workflows.

‍

We integrate with leading systems like Zendesk, Intercom, Shopify, HubSpot, Salesforce, and Google Cloud, allowing your AI agents to work across support, retention, and sales functions. LiveX AI also offers dedicated apps for platforms like Intercom, Shopify, and Google Cloud, making setup fast and effortless.

‍

For businesses searching for AI agent solutions that work within their current tech stack, LiveX AI is designed to fit right in—enhancing customer experience, retention, and revenue growth without requiring costly overhauls.

Whether you're managing customer support, retention, onboarding, or commerce, LiveX AI integrates where you need it most—so your team can scale with AI while keeping full control over tools and data.

‍

What benefits does LiveX AI offer over traditional support methods?

LiveX AI helps B2C and DTC businesses improve customer retention, boost revenue, and reduce support costs—delivering benefits that go far beyond traditional customer support methods.

‍

Unlike static chatbots or ticketing systems, LiveX AI provides human-like AI agents that can both communicate and take action—resolving issues, preventing churn, and guiding purchasing decisions in real time. By combining empathy, personalization, and automation, LiveX AI turns customer experience into a true growth engine.

‍

Key Benefits Include:

  • Up to 35% Churn Reduction: Proactively engage at-risk customers to prevent cancellations and lost revenue.
  • Up to 90% Self-Service Resolution: Empower customers to solve issues instantly, reducing human workload and costs.
  • Real-Time Personalization: Tailor every interaction to customer behavior, history, and intent—at scale.
  • Proactive Retention & Growth: Predict churn, recover revenue, and drive repeat purchases through intelligent interventions.
  • Omnichannel Engagement: Reach customers wherever they are—chat, voice, email, search, or QR code—without disruption.
  • Fast Deployment: Go live in days, not months, with no complex engineering required.
  • Actionable Customer Insights: Gain real-time visibility into behavior trends, churn signals, and satisfaction drivers.

Why should I use LiveX AI over other AI solutions?

Most AI solutions on the market are built to deflect customers, not delight them—resulting in frustrating experiences that damage trust, hurt retention, and often push customers to demand a human.

They’re static, limited, and ultimately leave both customers and businesses unsatisfied.

LiveX AI is different.

‍

‍

We provide human-like AI agents that customers actually want to engage with because the experience is so natural, fast, and helpful.

Our agents don’t just answer questions—they take real action: resolving issues, preventing churn, and guiding customers toward successful outcomes in real time.

‍

‍

By improving retention by up to 35%, achieving 90%+ self-service rates, and delivering personalized, brand-aligned interactions, LiveX AI transforms customer experience from a cost center into a true growth engine.

With enterprise-grade reliability, security compliance (SOC2, HIPAA, GDPR), and omnichannel support across chat, voice, search, and QR, LiveX is the production-ready AI solution built to scale—and to strengthen customer loyalty at every touchpoint.

How does LiveX AI change how a business can interact with their customers?

LiveX AI gives businesses the modern customer engagement layer they need to meet today’s consumer expectations—before AI-native competitors leave them behind.



Powered by human-like AI agents, LiveX enables businesses to deliver personalized, real-time interactions across every channel—chat, voice, search, and QR—ensuring customers feel supported, valued, and heard.

Instead of relying on outdated support models that frustrate customers or slow down service, LiveX AI automates routine interactions, proactively prevents churn, and provides fast, empathetic assistance that strengthens loyalty.



With the ability to reduce churn by up to 35% and achieve 90%+ self-service resolution, businesses can improve retention, scale without added cost, and create the kind of customer experience that today’s market demands.

‍
The future of customer interaction is already here—LiveX helps businesses step into it.

How does LiveX AI Customer Support Improve User Engagement?

LiveX AI transforms customer support into a powerful driver of engagement, satisfaction, and loyalty—by delivering instant, human-like assistance across every channel.


Today’s consumers expect fast, effortless experiences. When they don’t get them, frustration grows, loyalty fades, and churn increases. LiveX AI changes that by making support seamless, proactive, and actually enjoyable—keeping customers connected to your brand.

‍

Key Benefits:

  • Instant, Accurate Answers: Human-like AI agents resolve questions and issues in real time across chat, voice, search, and QR.
  • Effortless, Engaging Experiences: Conversational AI avatars provide natural, brand-aligned support that customers prefer to use.
  • Omnichannel Availability: Help is always within reach—anytime, anywhere, across channels.
  • Higher Satisfaction, Greater Loyalty: Fast, effective support reduces friction, strengthens retention, and boosts long-term customer value.
How does LiveX AI help human / live agents and cut support costs?

LiveX AI empowers customer service teams by combining human-like AI agents with real-time agent assist tools that reduce support costs while driving growth and improving customer retention.



Unlike traditional AI solutions that focus only on deflection, LiveX AI is designed to support both your customers and your live agents—creating a seamless, scalable support experience that strengthens loyalty and revenue over time.

By automating routine tasks like email summaries, internal note creation, and common inquiries, LiveX AI reduces ticket volume, minimizes handle times, and frees your human agents to focus on complex, high-value interactions.



With real-time AI prompts, suggested responses, and natural language understanding, agents resolve issues faster and more confidently—while the system continuously learns and adapts to your business needs.

‍

Can LiveX AI scale easily and continuously improve?

LiveX AI is built to scale with your business—helping you grow efficiently while continuously improving customer retention, satisfaction, and support outcomes.

‍

‍Unlike rigid point solutions, LiveX combines human-like AI agents with enterprise-grade flexibility, making it easy to expand across new products, markets, and customer touchpoints without sacrificing quality.As your business evolves, LiveX AI learns and adapts in real time—refining its knowledge, improving responses, and proactively addressing new challenges. Our flexible workflows and seamless integrations ensure that your AI agents stay aligned with your brand, processes, and growth goals at every stage.

‍

By reducing support costs, increasing automation, and driving customer loyalty, LiveX AI is uniquely positioned to help you scale efficiently—delivering the modern, human-like engagement today’s consumers expect, without the overhead.

What is an AI Assistant and how can it improve my business?

An AI Assistant is an intelligent virtual team member that interacts with customers in a personalized, human-like way—resolving issues, answering questions, and driving engagement in real time.

‍

‍Unlike traditional bots or static tools, LiveX AI’s human-like AI Agents go beyond deflection to actively improve customer retention, satisfaction, and revenue growth.

‍

‍By delivering fast, consistent, and empathetic support across chat, voice, email, and search, LiveX AI helps businesses:

‍

  • Reduce churn and increase loyalty through proactive, high-quality interactions
  • Lower support costs by automating routine tasks and empowering self-service
  • Boost customer satisfaction and lifetime value with personalized, always-on engagement
    ‍

With actionable insights and continuous learning, LiveX AI becomes a key driver of both operational efficiency and business growth—helping you meet the expectations of today’s consumers while preparing for tomorrow.