The rule will go into effect in about six months and seeks to save consumers “time and money,” according to the Federal Trade Commission.
Topline
The Federal Trade Commission will soon implement a rule making it easier for consumers to cancel their subscriptions and memberships, according to an announcement Wednesday, effectively clamping down on companies who complicate the cancellation process and threatening them with civil penalties if they continue to do so.Key Facts
The “click-to-cancel” rule will require businesses to “make it as easy for consumers to cancel their enrollment as it was to sign up,” according to the announcement, which noted the rule will become effective six months after it is published in the Federal Register.
The FTC voted 3-2 on Wednesday to approve the rule after a surge in consumer complaints about recurring subscription practices over the past five years, as the commission received an average of nearly 70 consumer complaints per day in 2024, a significant jump from the average of 42 it received each day in 2021.
The rule is part of the FTC’s review and modernization of its 1973 Negative Option Rule, which targeted deceptive marketing practices linked to subscriptions.
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