The FTC introduces the 'click-to-cancel' rule, requiring companies to offer an easy, one-click subscription cancellation and prevent hidden billing practices.
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The Federal Trade Commission (FTC) has announced a new rule called "click-to-cancel," which requires providers offering subscriptions to allow users to cancel easily with just one click after signing up. "Too often, businesses make people jump through endless hoops just to cancel a subscription," said Commission Chair Lina M. Khan.
The FTC works to promote competition and protect and educate consumers purchasing digital and physical products. The new rule will also prohibit sellers of subscriptions from withholding important information before obtaining consumers' billing details and charging them. No American should lose money on services they no longer want, and they should not be stuck paying for them. Almost everyone knows someone who is stuck paying for a subscription they don’t know how to cancel, leaving them stuck with the fees.
