Click-to-Cancel" Rule Introduced by FTC

The US FTC has a new rule called the "click-to-cancel" rule that will help consumers end memberships and subscriptions more easily. This regulation was adopted on October 16, 2024 by a vote of 3-2. It aims to solve some common problems that users encounter when they try to stop services they no longer need.

Rundown of the FTC's New Subscription Cancellation Rule

• Making it so easy to unsubscribe as it was to sign up.
• Online or telephone cancellation.
• Getting rid of talking to an agent.
• Limiting additional charges when canceling calls via telephone.
• Providing at least two cancellation methods for in-person signings.

Applicability of the Rule

• Is applicable to automatic subscriptions or trial periods
• No more bogus marketing material, not disclosing all aspects, charging without informed consent and hard to cancel

Why the Rule Was Created

• Revision of a 1973 Negative Option Rule to address the digital evolution.
• More complaints on hard-to-cancel subscriptions.
• There Is No Equivalent Protection In India As In The U.S.

About the FTC

• Established in 1914; tasked with eliminating unfair business practices and promoting competition
• Regulates competition and consumer protection
• Key Priority areasDigital privacy and data security