FTC Adopts "Click-to-Cancel" Rule Targeting Subscription Traps Ahead of Nov. 5 Election

Oct 16, 2024, 01:15 PM

The U.S. Federal Trade Commission (FTC) has adopted a final "Click-to-Cancel" rule requiring businesses to make it as easy for consumers to cancel subscriptions and memberships as it is to sign up for them. Targeting "subscription traps," the rule ensures that if consumers can sign up with a click, they can cancel with a click. This rule applies to retailers, gyms, and other businesses offering recurring services. Announced ahead of the November 5 election, this is the FTC's last major rulemaking and adopts key parts of the Consumer OPT-In Act introduced by Senator Chris Van Hollen and Representative Yvette Clarke. The Biden-Harris Administration supports this move to help consumers fight back against companies that impose hurdles when attempting to cancel unwanted services.