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Committee asks staff to draft 'click‑to‑cancel' bill after FTC finalizes negative‑option rule amid litigation
Summary
The committee reviewed the FTC's negative‑option (click‑to‑cancel) rule, heard national consumer advocates and the former FTC official who led the rule, and directed staff and members to draft complementary state legislation to guarantee simple cancellation and strengthen enforcement options for Wyoming consumers.
The Select Committee reviewed the Federal Trade Commission’s final negative‑option ("click‑to‑cancel") rule and debated whether Wyoming should adopt complementary state protections.
Talise Hansen of the Legislative Service Office briefed the committee on the FTC rule’s four central requirements: prohibit material misrepresentations, require clear disclosure of material terms, obtain separate affirmative consent for negative‑option features, and require that the cancellation method be as easy as the initial consent method. Hansen reported that the FTC’s rule became effective Jan. 14, 2025, with compliance originally required May 14, 2025.
John Breaute of the National Consumers League told the committee negative‑option marketing costs consumers billions and described recurring problems: hidden enrollment terms, difficult cancellation procedures, failure to provide timely reminders and deceptive omissions. "These practices are especially prevalent when it comes to subscriptions and free trials," Breaute said, citing consumer survey statistics and saying the rule addresses roach‑motel enrollment patterns.
Sam Levine, formerly director of the FTC’s Bureau of Consumer Protection and a principal architect of the federal rule, told the committee that the FTC extended the compliance date to July and that the Eighth Circuit scheduled oral argument in the industry challenge; he urged the state to act as a complement to federal enforcement. Levine recommended three legislative directions Wyoming could take: (1) require reminders before charges or renewals, (2) close industry coverage gaps where federal authority is limited (for example, ensuring billing entities cannot escape simple‑cancellation rules by claiming an exemption), and (3) strengthen enforcement by providing the Wyoming attorney general and private plaintiffs with explicit enforcement authority and civil penalties.
Committee members generally supported developing draft legislation. Representative Yin agreed to lead a bill draft and work with Representative Feiler and stakeholders to prepare language for the next meeting cycle.
Why it matters: committee members noted that unwanted recurring charges are common and that a state law requiring simple cancellation and pre‑charge reminders would protect consumers and support honest subscription businesses.
What’s next: Representative Yin and Representative Feiler will work with staff and stakeholders to prepare a draft for committee review; staff noted the federal litigation schedule and the FTC’s announced extension of the compliance date to July.
