FTC Announces “Click-to-Cancel” Rule Making It Easier to Cancel Subscriptions

The Federal Trade Commission has implemented a new “click-to-cancel” rule to make it easier for consumers to cancel subscriptions. Commission Chair Lina M. Khan emphasized the importance of eliminating deceptive practices in negative option programs, saving Americans time and money. This updated rule will apply to various media platforms and requires sellers to provide clear information and obtain consumer consent before charging them. Although negative option marketing can be convenient, the increase in complaints has led to the new rule. Controversially, the final rule dropped requirements for annual reminders and allowing sellers to discuss plan modifications before cancellation. The 3-2 vote for approval faced opposition from Commissioners Holyoak and Ferguson.

https://www.ftc.gov/news-events/news/press-releases/2024/10/federal-trade-commission-announces-final-click-cancel-rule-making-it-easier-consumers-end-recurring

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