The U.S. Federal Trade Commission (FTC) has announced a final “click to cancel” rule that will require companies to make it easier for consumers to cancel their subscriptions. Most provisions will become effective 180 days after publication in the Federal Register.
“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said Commission Chair Lina M. Khan. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”
The FTC received thousands of complaints each year regarding negative options, deceptive and unfair practices related to subscriptions. The number of complaints has steadily increased over the past five years, and as of 2024, the Commission received an average of nearly 70 consumer complaints per day, up from 42 complaints per day in 2021.
The final rule will ban sellers:
- create any material fact made in the course of marketing subscription goods or services;
- fail to disclose in a clear and understandable manner the essential conditions for receiving payment information from the consumer;
- fail to obtain clear informed consent of the consumer to subscribe before charging a fee;
- do not provide a simple mechanism for immediate unsubscription.
As noted above, the new rule will take effect 180 days after publication in the Federal Register. Although it will be adopted in the United States and will primarily affect Americans, there is a possibility that changes to services will come into effect in other parts of the world.
As a reminder, in June 2024, the U.S. Department of Justice filed a lawsuit against Adobe over similar issues. The company was accused of requiring consumers to go through a “burdensome and confusing” process to cancel their subscriptions.
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