FTC Sets Final “Click-To-Cancel” Rule For Subscriptions, Including Streaming
deadline.comThe Federal Trade Commission today announced a final “click-to-cancel” rule requiring sellers to make it as easy for consumers to cancel their enrollment as it was to sign up.
Most provisions will go into effect 180 days after it is published in the Federal Register, or from today. The 230-page rule runs the gamut from streamers to cable TV subscriptions to home shopping networks and gym memberships. “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 said it acted after receiving more than 16,000 comments from the public.
The Commission’s updated rule applies to so-called “negative option” programs in any media. It prohibits sellers from misrepresenting material facts while using negative option marketing; require sellers to provide more information before obtaining consumers’ billing details and charging them; and require sellers to get consumers’ informed consent to the negative option features before charging them.
Read more on deadline.com