10/16/2024

FTC Announces Final “Click-to-Cancel” Rule

This will make it easier for consumers to end recurring subscriptions, memberships

Today, the Federal Trade Commission announced a final “click-to-cancel” rule that will require sellers to make it as easy for consumers to cancel their enrollment as it was to sign up. Most of the final rule’s provisions will go into effect 180 days after it is published in The Federal Register.

"Too often, businesses make people jump through endless hoops just to cancel a subscription," said FTC Commission Chair Lina 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 commission's updated rule will apply to almost all negative option programs in any media. The rule also will prohibit sellers from misrepresenting any material facts while using negative option marketing; require sellers to provide important information before obtaining consumers’ billing information and charging them; and require sellers to get consumers’ informed consent to the negative option features before charging them.

Please select this link to read the complete press release from the FTC.