FTC Implements New Rule for Easier Subscription Cancellations

Reported about 1 month ago

The Federal Trade Commission (FTC) has adopted a 'click-to-cancel' rule to simplify the cancellation process for unwanted subscriptions and memberships. This regulation, aimed at preventing deceptive business practices, mandates that companies must secure consumer consent before charging for auto-renewals and must clearly disclose the end dates of free trials. FTC Chair Lina Khan emphasized the goal to eliminate unnecessary hurdles for consumers, ensuring they can cancel subscriptions with the same ease as signing up. The rule will take effect 180 days after publication, as part of a broader initiative to alleviate consumer burdens while receiving mixed reactions from businesses.

Source: YAHOO

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