FTC Ratifies Federal 'Click to Cancel Subscriptions' Rule, but with Some Weaknesses
The Federal Trade Commission (FTC) has ratified a federal rule designed to make it as easy to cancel online or app subscriptions as it is to sign up, following California's lead. However, two key elements have been removed from the final version: the requirement for annual reminders and the ban on companies trying to persuade customers not to cancel.
By Blip Tech
1 min read
The Federal Trade Commission (FTC) has ratified a federal 'click to cancel' rule, designed to make it as easy to cancel an online or app subscription as it is to sign up. The regulation requires businesses to clearly disclose all material facts and the fact that the subscription will continue until cancelled, get express informed consent for automatic renewal, and make cancelling as easy as signing up. The final version of the rule removed two previously proposed requirements: annual reminders about active subscriptions, and a ban on companies trying to persuade users to keep their subscriptions.
