Click-to-Cancel Was Struck Down, but Maintenance Memberships Still Have Rules

By The Professions Cloud Editors Updated October 2026 · 5 sources · 3 min read

Prices and facts checked October 13, 2026. We don't accept payment for rankings.

What happened: on July 8, 2025, days before it took effect, the Eighth Circuit vacated the FTC's "click-to-cancel" rule because the FTC skipped a required preliminary regulatory analysis (Gunderson Dettmer). A week earlier, on July 1, 2025, California's amended Automatic Renewal Law (AB 2863) took effect with many of the same requirements (Cooley).

Why it matters today: HVAC, plumbing and pest-control businesses rely on auto-renewing maintenance memberships, and AI receptionists and texting tools now sign customers up and handle cancellations. More than half of states have auto-renewal laws, many as strict as the vacated federal rule (Greenberg Traurig).

What still applies after the ruling

Sources: Gunderson Dettmer; Greenberg Traurig.

California's rules (the strictest common benchmark)

Since July 1, 2025, California requires (Cooley; Barnes & Thornburg):

1. Express affirmative consent to the renewal or continuous-service terms
2. Records of consent for at least 3 years, or 1 year after the contract ends if later
3. Cancel the same way they joined: if they signed up by phone, they can cancel by phone; online, online
4. A "click to cancel" option online, even if you show a save offer
5. Annual reminders with what the plan is, how much and how often it charges, and how to cancel
6. Price change notice 7–30 days before a new fee

The rules expressly cover "continuous service" offers, which is how many maintenance memberships are structured.

Two details matter for phone-heavy home service businesses (Venable):

• Voicemail cancellations must be answered within one business day.
• The "one save" rule: you may offer a retention discount, but only after telling the customer they can still cancel at any time, and you must then process the cancellation promptly.

The amendments apply to contracts entered into, amended or extended on or after July 1, 2025, which in practice includes most memberships at their next renewal.

Example: an HVAC membership done right

At sign-up (phone, with an AI receptionist): "The Comfort Club is $19.99 a month, billed monthly, and includes two tune-ups a year and 15% off repairs. It renews automatically every month until you cancel, and you can cancel anytime by phone, text or online. Do you agree to those renewal terms?" The customer says yes, and the call log stores that consent.

Confirmation text: the same terms in writing, plus a cancellation link and number.

Each year: a reminder of the price, frequency and how to cancel.

At cancellation: "You can cancel right now. Before you do, would a free filter change change your mind? If not, I'll cancel it today." Then cancel it, and confirm in writing.

Where AI tools come in

• AI receptionists signing up members must state the terms clearly and capture affirmative consent. Record the call or log the consent text.
• Cancellations by phone or text must be honored. If a customer tells your AI agent "cancel my membership", that should cancel it, not trigger a sales loop.
• Save offers are OK, but they can't block cancellation.
• Automated reminder texts must also follow TCPA consent and opt-out rules (our TCPA guide).

A membership compliance checklist

1. Write the terms plainly: price, billing frequency, what's included, renewal date and how to cancel.
2. Get a checkbox or clear verbal yes to the renewal terms, separate from the service agreement.
3. Store the consent record with the customer file.
4. Offer cancellation by phone, online and text, matching how customers join.
5. Send an annual reminder before each renewal.
6. Script your AI receptionist for sign-ups and cancellations, and test both.

Choosing an AI receptionist? See the best AI receptionists for contractors.

FAQ

Is click-to-cancel coming back?

The FTC can't simply reinstate it. A new rulemaking would be needed, and commentators doubt the current FTC will pursue one.

Do maintenance memberships count as subscriptions?

Often yes, as "automatic renewal" or "continuous service" plans under state laws. Check your state's definitions.

Can my AI agent try to save a cancellation?

A brief save offer is generally allowed, but the customer must still be able to cancel easily in the same channel.

Changelog: Oct 13, 2026: first published.