FTC plans to make it easier to opt out of subscriptions. The planned click-to-cancel requirement would make it very easy to cancel or opt out of a subscription just as it is to sign up in the first place.
FTC Plans To Make It Easier To Opt Out Of Subscriptions
On Thursday, the Federal Trade Commission proposed provisions that would take away barriers to canceling subscriptions as well as recurring payments. The new guidance in question would work to end the “seemingly never-ending struggles to cancel unwanted subscription payment plans,” the FTC in a release said.
“The proposed rule would require that companies make it as easy to cancel a subscription as it is to sign up for one,” Chair of the FTC, Lina Khan, said in a statement.
How the New Rule Works
Under this very rule, firms would be required to allow customers to cancel a subscription in no more steps than it took them to originally sign up. They would also be required to get permission just before showing additional offers when customers try to opt-out or cancel a subscription and send annual reminders before automatic renewals take place.
Application of the New Changes
The changes proposed would have a wide-ranging application, from newspapers to gym memberships, but, however, also “to all subscription features in all media,” as per an FTC factsheet on the rule. Subscriptions that are purchased over the phone, on the internet, in print, or even in person would be reportedly regulated. Companies and firms would have to let for cancellation by the same method in the same number of steps or even fewer.
FTC Will Be Accepting Public Comments Soon
The FTC in question will be accepting public comments very soon when a 60-day comment window opens up.
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