The Federal Trade Commission announced Wednesday that it has finalized a proposal known as “click to cancel” that would require companies to make it as easy as signing up for a subscription or service.
The agency said it receives about 70 complaints a day about subscription fees that are difficult to cancel or that people didn’t realize they signed up for in the first place.
“Too often, companies make people jump through endless hoops just to opt out,” FTC Chairwoman Lena Khan said in a press release. “The FTC’s ruling will end these scams and traps, saving Americans time and money. No one should have to pay for a service they no longer want.”
FTC commissioners approved the final rule by voting 3-2.
Federal Trade Commission
The White House said in August that it was looking to combat the complex and often difficult process of canceling cable subscriptions, gym memberships or other services, as part of a plan to… Wider effort To address common consumer complaints.
The final “click-to-cancel” rule prohibits sellers from:
When does Click to Cancel take effect?
Most provisions go into effect 180 days after the rule is published in the Federal Register, according to the FTC.
What’s not to like?
The U.S. Chamber of Commerce opposes the government-wide initiative, including the Federal Trade Commission’s new opt-in rule, accusing the agency Wednesday of trying to “micromanage business decisions.” The group says the latest move will increase costs for consumers.
The White House reiterated its support for the rule, issuing a statement on Wednesday from National Economic Adviser Lael Brainard, who described it as part of the “Biden-Harris administration’s actions to reduce costs for consumers.”