A “click to cancel” law was last month passed in California, and now the FTC has ratified a federal rule designed to achieve the same goal. The idea of both is to force companies to make it as easy to cancel an online or app subscription as it is to sign up in the first place.
Update: Following a court challenge, the US Eighth Circuit Court of Appeals has vacated the rule. See update at the end …
Both laws were introduced in response to sketchy practices by companies designed to make it as difficult as possible to unsubscribe.
The proposed rule would require businesses to make it at least as easy to cancel a subscription as it was to start it. For example, if you can sign up online, you must be able to cancel on the same website, in the same number of steps. The FTC launched an investigation into Adobe after customers accused the company of shady practices in this area.
Federal ‘click to cancel subscriptions’ rule is ratified
The agency has now announced that the rule has been finalized.
“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said Commission Chair Lina M. Khan. “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.”
It’s common for subscriptions to automatically renew unless cancelled, which the FTC refers to as “a negative option” – that is, the subscription is opt out rather than opt in annually.
The new rule imposes four conditions on all subscriptions:
Clearly and accurately disclose all material facts
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