Click, Click... Who’s There?
The FTC’s New Rule is Knocking!
Here’s What Every Children’s Activity Center Needs to Know:
Updated: May 12, 2025
You’ve got families asking about classes, staff asking how to process a dropped enrollment request, and a toddler doing somersaults in the lobby. And now? There’s a new United States Federal Trade Commission ruling that might affect how you handle dropped enrollments.
Introducing: The FTC’s Click-to-Cancel Rule
Beginning in July 2025, the FTC (that’s the Federal Trade Commission—but today we’re calling them the “Fun-Time Cancellers”) is enforcing a new rule. If you’re billing parents or families automatically each month, you’ll need to make dropping enrollments just as easy as signing up.
That means:
❌ No 6-step scavenger hunts.
❌ No “email us and we’ll get back to you.”
❌ Definitely no “please call between 2:07–2:11pm every second Tuesday.”
Does This Rule Apply to You?
- Do you auto-bill monthly for classes, practices and other activities?
- Do you offer rolling enrollment or “set it and forget it” signups?
- Do your free trials turn into paid enrollments unless dropped?
If you answered “yes” to any of these, then…
Congratulations—you’re officially in the negative option billing club, and the FTC wants to make sure families know how to opt out when they need to.
What the Ruling Says (No Legal Degree Required)
“Cancel” must be as easy as “Sign Up”: If parents can enroll online, they must be able to drop their enrollment online just as easily.
Be Clear Upfront: Pricing, billing frequency, and cancellation terms need to be obvious before anyone agrees to make a payment.
Get Consent: Your policies are your new bestie! Be sure to update your Billing Authorization (Terms & Conditions) and Returns, Refunds & Cancellation Policies.
Ditch the Red Tape: No more phone calls or email-only dropped enrollment requests.
Non-compliance can carry serious consequences, including potential enforcement actions for failing to meet the FTC’s requirements and civil penalties for each violation of the Rule of more than $50,000!
Time to Tidy Up: Your FTC-Friendly Checklist
✅ Review your billing flow: Make sure your site or app clearly states that recurring enrollments auto-renew before payment is collected.
✅ Clarify your notice period: A cancellation policy is perfectly reasonable—just be upfront with your customers. Get the agreement in writing and restate or link the policy in your enrollment confirmation email.
✅ Train your team: “We’ve always asked them to call” won’t cut it anymore. Update scripts and internal training materials.
✅ Do a test run: Walk through the dropped enrollment process as if you were a parent. If it’s confusing or outdated, it’s time to streamline.
NEW Optional Setting in iClassPro: Auto Approval of Dropped Enrollment Requests
To support your efforts in complying with the FTC’s new “Click to Cancel” ruling, iClassPro has released an optional system setting that allows for automatic approval of online drop requests.
By default, this setting is turned off, meaning your current process will remain unchanged unless you choose to enable it.
If enabled, the system will automatically approve drop requests submitted through the Customer Portal, helping streamline compliance. Please note: staff will still need to manually adjust family ledgers if a customer has already been billed for a future period—just as you currently do when processing transfers.
In addition, a new statement will now appear on the checkout page:
“If you are enrolling for recurring lessons or sessions, charges will recur automatically each month or session unless your enrollment is dropped. To avoid future charges, please review the Returns, Refunds & Cancellation Policy on this page for cancellation requirements.”
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Disclaimer:
The information provided in this article is for general informational purposes only and is not intended as legal advice. iClassPro does not provide legal services or counsel. We strongly recommend that you consult with your own legal professional to ensure your business is in full compliance with all applicable laws and
FTC regulations.
