FTC 'Click to Cancel' Rule Aims to Make Canceling Subscriptions Easier

The Federal Trade Commission (FTC) has announced a final "click to cancel" rule that aims to simplify the process of ending subscriptions and memberships for US consumers.

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The new rule will require businesses to make cancellation processes as straightforward as sign-up procedures, and companies will be prohibited from forcing customers to use chatbots or speak with agents to cancel subscriptions that were originally initiated online or through an app. For memberships started in person, businesses must offer cancellation options by phone or online.

In a statement accompanying the Commission's press release, FTC Chair Lina M. Khan said: "Too often, businesses make people jump through endless hoops just to cancel a subscription. 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 rule will apply to almost all negative option programs across all media. It also requires sellers to provide clear information before obtaining billing details and to secure informed consent for negative option features prior to charging customers.

The move follows a significant increase in consumer complaints about subscription practices, according to the FTC. In 2024, the government agency received an average of nearly 70 complaints per day related to negative option and recurring subscription issues, up from 42 per day in 2021.

The Commission voted 3-2 to approve the final rule, with two Republican commissioners opposing it. Some initially proposed measures were dropped, including requirements for businesses to send annual reminders about recurring charges. The new regulation is set to take effect 180 days after publication in the Federal Register.

The regulation is part of the FTC's efforts to modernize its 1973 Negative Option Rule and address unfair practices, and follows recent legal actions against major companies like Amazon and Adobe over their subscription practices.

Tag: FTC

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Top Rated Comments

StuBeck Avatar
16 weeks ago
There should be no one against this.
Score: 44 Votes (Like | Disagree)
abatabia Avatar
16 weeks ago
Actually a great idea.
Score: 38 Votes (Like | Disagree)
AppleTO Avatar
16 weeks ago
Good luck SiriusXM.
Score: 29 Votes (Like | Disagree)
rforno Avatar
16 weeks ago
Read the fine print....

Per the WSJ, pursuant to the new FTC order on 1-click cancellation:

"Consumers can’t be required to interact with a live or virtual representative, such as chatbot, unless they consented to that step when they initiated the subscription. "

Watch this order be completely circumvented by companies slipping something into the ToS that nobody reads and then later claiming in court that customers 'consented' to their (existing if not enhanced) friction-filled unsubscription process.
Score: 21 Votes (Like | Disagree)
Moukee Avatar
16 weeks ago
Win for the consumers!

It's actually the reason why I often subscribe via in-app purchase as long as the pricing is similar. Because Apple makes it trivial to cancel any subscription whenever I feel like it within the Settings app.
Score: 19 Votes (Like | Disagree)
progx Avatar
16 weeks ago
I think this would be a great idea. So many streaming services make you go through three or four screens before you cancel. Some of them can be deceiptive with getting you to hit "Cancel" from Cancelling the Service. Not too many offer a straightforward cancel and your done.

I can understand if you don’t know where subscriptions are in your iCloud, then it might be a bit difficult to cancel. I’ve never had an issue with it.
Score: 15 Votes (Like | Disagree)