CBD Subscriptions Under the FTC’s New ‘Click‑to‑Cancel’ Rule: What Must Change by July 14, 2025

Understanding the FTC’s Updated Negative Option Rule: Implications for CBD Subscription Businesses

The landscape for CBD subscription services is about to transform. The Federal Trade Commission (FTC) has finalized sweeping amendments to its Negative Option Rule—commonly called the “Click-to-Cancel Rule”—with most provisions enforced starting July 14, 2025 (FTC official rule). For operators of CBD and hemp product subscriptions (autoship, free trials, and subscription boxes), rigorous new obligations demand immediate attention.

This post examines what the FTC Negative Option Rule means for CBD subscription compliance at the federal level, how it dovetails (and sometimes conflicts) with evolving state rules, and what businesses must change in infrastructure, customer experience, and documentation to avoid major enforcement risks in Q3 2025 and beyond.

What Is the FTC’s ‘Click-to-Cancel’/Negative Option Rule?

The amended Rule aims to protect consumers from unauthorized recurring charges, confusing opt-outs, and misleading sales tactics in digital subscriptions of all kinds—including CBD. It applies to any business using:

• Subscription programs
• Membership plans
• Automatic renewal/autoship
• Free-to-pay conversions (free/trial periods that roll into paid subscriptions)

CBD and hemp brands that offer recurring shipments, subscription boxes, or auto-refill services are now squarely covered.

Notably, the rule also covers business-to-business (B2B) programs and is not limited to direct-to-consumer sellers (Latham Watkins analysis).

Key Compliance Changes Effective July 14, 2025

1. “Clear and Conspicuous” Disclosures Up Front

Before collecting payment or personal info, CBD sub box brands must clearly disclose all major terms where consumers will see them. These must appear before the consumer agrees to buy—no hiding them in footnotes or links.

Required disclosures include:

• The fact that payments will recur unless canceled
• The cost and frequency of charges
• The deadline to cancel to avoid further charges
• How to cancel (including an online option if sign-up was online)
• Any significant conditions, such as minimum terms or refund limitations

Ensure disclosures are at least as prominent as the main offer/sales CTA. Review your website UX, order forms, and checkout screens for compliance—the FTC expects all disclosures in “proximity.”

2. Unambiguous, Standalone Consent

The Rule requires express, affirmative consent specific to the subscription or negative-option feature. This must be:

• Separate from other consents (no burying in “I accept the Privacy Policy” checkboxes)
• Clearly obtained before any charges or fulfillment

CBD sites must implement:

• Standalone checkboxes for agreeing to recurring billing
• Digital audit trails/logs of every consent captured

This applies across web, mobile app, and voice channels.

3. Simple, Immediate Cancellation: ‘Click-to-Cancel’

If a subscription is started online, consumers must be able to cancel online easily—ideally via a single click. You cannot require customers to:

• Call a phone number
• Send an email
• Complete unnecessary steps or listen to offers/“save” pitches unless they affirmatively opt-in

Immediate means immediate—once the cancellation request is submitted through the channel the consumer used to sign up, the business must not introduce any unreasonable friction.

Checklist for CBD brands:

• Ensure your customer portal surfaces a cancellation mechanism at least as visible as the sign-up flow
• Avoid requiring additional authentication if not needed for purchase
• No forced “chat with agent” requirements just to cancel

4. Restrictions on “Save” Tactics

The Rule prohibits presenting upgrade, discount, or alternate offers (“save” tactics) during cancellation—unless the consumer expressly opts to consider such offers. Even then, the save offer cannot delay or obstruct immediate cancellation.

5. Prohibition of Misrepresentation

Any material misrepresentation about the subscription program or negative option is expressly forbidden. This includes:

• Hidden fees
• Failure to disclose cancellation deadlines
• Overstating refund potential
• Misleading product claims

6. New Recordkeeping and Documentation Requirements

Brands must maintain detailed records for at least three years (federal minimum; states may be stricter), such as:

• Consent logs
• Copies of all disclosures presented
• Cancellation request logs and timestamps
• Evidence of all communications and customer interactions

CBD Industry Takeaways: What Must Change Before July 2025?

Implement Separate Consent Checkboxes

Most CBD/hemps sites will need to add a separate, unambiguous checkbox for customers to specifically agree to recurring billing. Combine this with clear language and ensure it cannot be pre-checked.

Rework Checkout and Renewal Flows

Audit the entire checkout (and onboarding) user experience—ensure all negative option program disclosures are prominent, before payment, and unavoidable.

Build “Click-to-Cancel” Flows in Every Channel

If a subscription can be started online, your portals must allow online cancellation, without email/call requirements or chat bottlenecks. Technical and customer support teams must adapt scripts and processes.

Sync With State Auto-Renewal Laws

States including California, Colorado, and New York impose additional or stricter obligations—like pre-renewal reminder notices (California Auto-Renewal Law Update July 2025). Local compliance is not preempted by the FTC—if state law calls for more, you must do more.

Establish Complete Compliance Records

Document every step—disclosures, consents, cancellations—as you go. You’ll need this evidence to defend against FTC or state AG investigations.

Review Processor and Customer Support Policies

Payment processors and acquiring banks may update their requirements around renewal reminders, chargeback management, and record collection. Align policies and update staff training before Q3.

Enforcement, Penalties, and Risk Areas for CBD Brands

Non-compliance is costly. The FTC (and state AGs) can bring enforcement under Section 5 of the FTC Act for unfair or deceptive practices, with potential civil penalties per violation, redress orders, and negative PR impacts.

• The FTC has made clear it considers negative option abuses a major enforcement priority post-pandemic (FTC press release)
• Enforcement can include unannounced audits, investigative subpoenas (CIDs), and refund mandates

CBD/hemp brands—because of elevated scrutiny around both product claims and payment processing—should expect to be among the industries most visible to enforcers.

Timeline: Actions For CBD Subscriptions by July 14, 2025

• Now: Begin a comprehensive audit of disclosure, consent, and cancellation flows. Vet compliance with both FTC and relevant state rules.
• Spring 2025: Deploy tech updates for frictionless “click-to-cancel” and launch staff retraining. Align payment/renewal policies with updated rules.
• July 14, 2025: Compliance deadline—do not wait until then. FTC and state AGs will expect immediate adherence.

The Bottom Line: What CBD Subscription Businesses Need To Do

• Review every customer touchpoint: Add or update disclosures, unambiguous standalone consent, and user-friendly cancellation.
• Align with strictest law: Harmonize FTC and leading state regulations (e.g., California)
• Document everything: Retain all required records for at least three years; longer if state law demands
• Prioritize consumer transparency: Resolve subscription complaints quickly and fairly

The new Rule is a watershed for FTC Negative Option Rule CBD subscriptions compliance. There is no substitute for a disciplined, multi-state approach—waiting risks serious consequences.

For detailed compliance support, workflows, and up-to-date regulatory intelligence on hemp/CBD and all cannabis verticals, visit CannabisRegulations.ai today.