From the WA Wine Institute: We learned that the FTC has delayed the enforcement date for their new "Click-to-Cancel" rule from today, May 14, 2025 to July 14, 2025. We wanted to alert you as soon as we could, so you have the most up-to-date information for your use and decision making as needed. You can click here for the official FTC notice of enforcement being delayed two months.
Please see below for the article from the law firm Foster Garvey PC we've included in past e-newsletters providing details on FTC's "Click-to-Cancel" Rule. As always, feel free to reach out if you have questions.
Legal Alert: The FTC's "Click-to-Cancel" Rule – What Wineries Need to Know for Compliance
By Brian Fink, Attorney at Foster Garvey PC| brian.fink@foster.com
The Federal Trade Commission's (FTC) new "Click-to-Cancel" rule went into effect earlier this year, and enforcement begins May 14, 2025.
This rule applies to businesses that offer recurring payment programs (a/k/a negative option programs). For wineries, this means assessing and potentially revising your wine club membership sign-up and cancellation processes.
The "Click-to-Cancel" rule requires that cancellation must be as easy assigning up. For example, if consumers can join a wine club online, they must also be able to cancel their membership online with the same simplicity, such as by clicking an obvious "Cancel Membership" button. Requiring members to send an email to request cancellation or navigate a multi-step process risks violating the rule.
Similarly, if your winery requires members to confront retention offers (e.g., discounts to stay in the club), the rule stipulates that members must first consent to viewing these offers and be allowed to decline them entirely without obstructing the cancellation process.
It is crucial for wineries to review their e-commerce platforms and wine club sign up and cancellation processes for compliance with the FTC's requirements. The rule mandates that all material terms of the subscription, including pricing, billing frequency, cancellation policies, and any additional fees, must be clearly disclosed before obtaining a consumer's billing information.
Noncompliance could result in hefty civil penalties. Additionally, consumers have increasingly relied on FTC principles in private lawsuits, including recent cases targeting allegedly deceptive practices in the alcoholic beverage industry.
By acting now, wineries can get ahead of the FTC's "Click-to-Cancel" rule, avoid penalties or civil lawsuits, and protect their brand reputation.
This is a high-level summary of a complex topic. It is not intended as legal advice. Please consult with your attorney if you have questions about these issues.
