Overview
- 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.