FTC Implements 'Click to Cancel' Rule to Simplify Subscription Cancellations

The new rule mandates businesses to offer straightforward cancellation methods, addressing consumer complaints about deceptive practices.

The FTC's 'click to cancel' rule requires businesses to make subscription cancellations as easy as sign-ups, aiming to eliminate deceptive practices.
Businesses must disclose all terms clearly, including charges and cancellation steps, to prevent misleading consumers with free trials and auto-renewals.
The rule includes provisions for maintaining records of consumer consent for three years and prohibits mandatory live agent interactions for cancellations.
Despite industry concerns about compliance costs, the FTC argues that existing systems should easily integrate the required changes.
The rule, part of a broader effort to combat 'junk fees,' takes effect within 60 to 180 days, with penalties for non-compliance.