FTC formalizes “click-to-cancel” rule for easy and straightforward subscription cancellations

The Federal Trade Commission has just made it easier for consumers to cancel subscriptions and voted to ratify the “click-to-cancel” rule. The rule was first proposed last year, and it prohibits companies from misrepresenting their recurring services and memberships, as well as from failing to disclose the terms of these services and memberships. The rule also makes it as easy to cancel a subscription as it is to sign up. FTC Chair Lina Khan stated that businesses tend to make people jump through hoops to cancel a subscription, and that will be no more with this new rule. It will end the tricks and traps some businesses lead you through just to cancel a subscription.

FTC has, however, decided not to write the final rulemaking as originally proposed. It scrapped a proposal that would have required companies to provide consumers with annual reminders for subscription renewals.

Another one from the scrapped rules is one that would have forced sellers to obtain consent before giving people reasons why they should continue paying for a service.  

If there is no legal challenge to the Federal Trade Commission’s decision, the rulemaking is supposed to go into effect 180 days after it is published in the Federal Register.

I personally think that making canceling subscriptions easy and straightforward into a legal requirement is great. I’ve always ended up with easy-to-cancel subscriptions somehow and have personally never had problems with canceling a subscription, but that isn’t true for everyone.  

So, making it mandatory to give users a clear and straightforward, easy way to cancel a recurring payment for a subscription or membership is a great move. Hopefully, no legal challenge to this ruling will come and the FTC will be able to put into effect the rule. For now, luckily, it seems it really is happening.