Recurring revenue is the holy grail for online business owners. It is reliable, helps avoid feast and famine cycles, and it just helps manage the stress of running a business when you know there is revenue due to come in.

However, as of July 14, 2025 the Federal Trade Commission (FTC) requires businesses to follow a new rule when it comes to subscriptions, often referred to as the “Click to Cancel” rule. The rule came into effect to stop shady subscription tactics and protect consumers from being charged without clear consent. 

While many news articles have focused on the “ease of cancellation” aspect of the rule, there’s another part that’s just as important—what you must disclose and get consent to, BEFORE a customer pays.

In this post, you’ll learn:

• What the new FTC rule actually states
• The specific requirements you must meet
• Simple, actionable steps to help you stay compliant
• Common mistakes and how to avoid them

Let’s make sure your business is both legally compliant and customer-friendly.

What Is the “Click to Cancel” Rule?

The rule is aimed at making subscriptions clear and easy to cancel for customers. 

And while it might seem tedious or frustrating as a business owner, it’s likely to result in fewer customer support tickets, payment processor disputes, and even more reliability when it comes to your income since you won’t need to issue refunds as often.

The FTC’s “Click to Cancel” rule is part of its updated Negative Option Rule (which is a really confusing name, so ignore that and just focus on the subscriptions part that I’m covering), which covers:

• Subscription products (for example, memberships, where there is ongoing access to a product or service as long as the subscription is active)
• Automatic renewals (for example, A course that grants 1-year access and renews annually unless the user cancels)
• Free-to-paid trials (for example, a free 7 day trial that then renews at $10/month)
• Payment plans that renew or extend beyond the initial term (for example, a split pay for an annual plan on a membership, that renews annually)

Here’s what the rule says you must do:

• Canceling must be as easy as signing up.
• Clear, upfront disclosure before the purchase is mandatory.
• Affirmative consent is required.

What the New Rule Requires You To Do Moving Forward

The FTC’s new rule has two major parts you need to follow:

Clear Disclosures and Consent Before Charging

Before you charge someone, they must clearly understand:

• What they’re paying for
• How much it costs
• How often they’ll be charged
• How they can cancel

You must also get clear consent before charging. That means:

• A required checkbox at checkout with simple, direct language like:
  “By checking this box, you agree to be charged $29/month until you cancel. You can cancel anytime at [insert link].”

This prevents surprises and builds trust.

Click to Cancel

Customers must be able to cancel:

• The same way they signed up (if sign-up was online, cancel must be online too)
• Without needing to email, call, or chat with support (unless that was required to purchase)
• Using a cancel link or portal that is easy to find

What works:

• A cancel button in their account settings
• A clear link in your website footer or Terms and Conditions

What doesn’t work:

• Hiding the cancel option
• Requiring customers to contact support to cancel
• Adding extra steps or delays to stop billing

Step By Step: How to Ensure Compliance

Here’s how to update your business checkout pages so that they follow the new FTC rule:

Add A Checkbox At Checkout Spelling Out The Terms Of The Subscription, And Ensure It’s Required To Be Checked Before Proceeding To Payment

Clearly show what the customer is agreeing to before they complete their purchase. The checkbox should spell out the recurring charge, how often it occurs, and how they can cancel. Make sure the box is unchecked by default so the customer must actively agree.

Update Your Terms and Conditions

Your Terms and Conditions are the rule book customers must agree to when purchasing from you. 

Your terms should include among other things, all key details about billing and how to cancel. Link to this page clearly during the checkout process so customers can review it before buying. 

Even better, be sure they are required to agree to the terms and conditions at checkout (once again the box should not be pre-checked).

Ensure your Cancellation Process/Link is Easy to Locate

While every business owner hates churn and customers cancelling you still must make it easy for customers to cancel.

A cancel link should be easy to find—such as in your website footer, on a help page, or inside a customer portal. 

Remember the cancellation process should be just as easy as signing up was, so if they could find your sales page without reaching out to you personally, they should be able to locate the means to cancel without reaching out as well.

Turn on Customer Portals (if your platform has the functionality)

If you use platforms like ThriveCart, enable customer account areas(it’s called the customer hub) where users can manage their subscriptions. Letting customers cancel on their own isn’t required, but it’s the easiest and most effective way to follow the rule.

Automate the Cancellation Process

Don’t make customers wait for manual approval. Once someone submits to cancel, your system should immediately stop future charges. This avoids mistakes and keeps you compliant.

Add a Buffer Period (Optional but Helpful)

If automatic cancellation is difficult with your system, or you don’t want to use your tools’ automatic cancellation functionality and you want to give yourself time to process cancellations, you can say that cancellations must be made 2–3 business days before the next charge. 

Just be sure to clearly explain this in your disclosure and Terms and Conditions.

These changes don’t just keep you compliant—they also improve trust and reduce refund requests and payment disputes.

Easy-to-Make Mistakes (and How to Avoid Them)

There are a lot of moving pieces when it comes to running an online business so it’s easy to miss something or drop a ball. Here are some common mistakes that can get you in trouble with the FTC:

Using Pre-Checked Boxes

A box that’s already checked doesn’t count as real consent. The customer must actively check the box themselves to show they agree to the recurring payment.

Forgetting to Update Terms and Conditions

Outdated Terms and Conditions can put you at risk in more ways than one. Make sure your policies explain the billing frequency, how to cancel, and any deadlines for stopping a charge before the next payment goes through.

Not Testing the Cancellation Process

Go through your own cancellation process like a customer. If it takes more than a few clicks or feels confusing, change it. 

A smooth cancellation process not only keeps you compliant—it also shows you respect your customers.

Avoiding these mistakes helps you stay compliant—and keeps your customers happier too.

Want Help With the Legal Side of Your Online Business?

If this post helped clarify the new FTC rule, you’ll want to check out The Smart Blogger’s Guidebook to the Legal Side of Blogging.

This reference guide is designed to help bloggers and digital product sellers understand the legal rules that apply to their business. It explains what’s required and why it matters—so you can make informed decisions and protect your business from costly mistakes.

Inside, you’ll learn:

• What your Terms and Conditions and Privacy Policy need to cover (and why)
• What disclosures are legally required for affiliate links and sponsored content
• The rules around email marketing (including CAN-SPAM and consent)
• The basics of copyright and trademark protection
• How consumer protection laws apply to selling digital products and memberships

The Smart Blogger’s Guidebook to the Legal Side of Blogging is a straightforward reference made for non-lawyers. Get the guide here

The post FTC’s Click to Cancel Rule: What Digital Sellers and Membership Sites Must Do to Stay Compliant appeared first on ELIZABETHSTAPLETON.COM.

However, setting up an affiliate program isn’t just about the rewards. It requires careful selection of technology, an understanding of the legal side of running an affiliate program, and a willingness to manage your program.

What is an affiliate program

If you sell digital products, then adding an affiliate program could help you generate more sales faster.

At its core and affiliate program rewards people for sharing your product with commissions. The amount of which you decide.

Customers or affiliate marketers – often content creators of some sort, sign up for your program and are given a special link that helps tie them to people they refer as buyers.

The trickiest part of setting up an affiliate program is finding the right tech. Ideally whatever tech you use to sell your products will have the functionality to run an affiliate program as well. Personally, I use Thrivecart and have the Pro version (and no monthly cost, thanks to the lifetime plan) so I could have an affiliate program for my products.

Many platforms that give you the ability to sell your products will have this functionality, or will integrate with a tool that will, however it may require you to upgrade to a higher tiered plan. So be sure your business is actually in a place where you can afford that additional financial cost. 

Legal Requirements of Affiliate Programs

In the United States the Federal Trade Commission, known as the FTC requires that any affiliate relationship be disclosed before anyone can click on a monetized link.

You can read more about affiliate disclosure requirements here. Basically, if you have a financial interest in promoting a product, the potential buyer should know and so that is what the FTC rules are there for.

And to make sure you don’t end up with affiliates trying to take legal action, it’s important to have a terms and conditions policy specifically for your affiliate program.

What are Affiliate Program Terms and Conditions?

An Affiliate Terms and Conditions Policy acts as the rulebook for your affiliate program. It tells your affiliates what they can and cannot do when promoting your products. Some rules you have to have – like adhering to any laws you’re required to follow (for example, the FTC). Others you get to decide on… 

• How much commission you’ll pay out
• When to payout commissions
• How long between the referral and the sale you’ll allow (Amazons is only 24 hours) to reward a commission

Just like your website terms and conditions policy is the equivalent of saying “my house, my rules” for your website, your affiliate terms and conditions policy is saying “my products, my rules” when it comes to sharing and marketing them.

My experience with running an affiliate program

I’ve had an affiliate program for my products for over 5 years. However, I can’t say I’ve done a fantastic job of running it, meaning keeping my affiliates up to date on promotions, etc. But that has changed this year…. More on that later.

Despite not being great at promoting my affiliate program or running promotions with my affiliates, in 2023, my affiliate program generated over $40,000 in revenue. I paid out $17,997 in affiliate commissions in 2023, my biggest year to date. 

Which means I netted over $20,000 in profit from my affiliate program. That’s $20,000 in the bank, thanks to an affiliate program that I did a fairly mediocre job running.

Given the value of having an affiliate program for my products, I’ve invested in a membership to help me better run my affiliate program. So that at the very least, I email my affiliates monthly to let them know what is going on and motivate them with promotions and additional incentives.

A few things I have done well, is to have an onboarding email sequence to help my affiliates become familiar with my program and the promotion resources I offer. I also created some automations to help pull in my affiliate’s IDs so that I can include their personal affiliate links in emails I send out.

Little by little my affiliate program gets better each year, and my affiliate program’s terms and conditions help keep it running smoothly.

Additional Resources that help with running an affiliate program

These are the resources I’ve used to help me up my affiliate program game:

• My Affiliate Program Terms and Conditions Template
• Affiliate Program Management: An hour a day – Get it on Amazon
• Affiliate Program Toolkit from Zoe Linda
• Affiliate Amplify from Zoe Linda

Elizabethstapleton.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com

The post Why (and how) You Should Start an Affiliate Program appeared first on ELIZABETHSTAPLETON.COM.