FTC, Backed by Biden-Harris Administration, Adopts 'Click-to-Cancel' Rule for Easy Subscription Cancellations

Oct 16, 2024, 04:34 PM

The U.S. Federal Trade Commission (FTC), supported by the Biden-Harris Administration, has adopted a new 'Click-to-Cancel' rule on October 16, requiring businesses to make it as easy for consumers to cancel subscriptions and memberships as it is to sign up for them. The rule applies to retailers, gyms, online services, and streaming platforms, covering both online and offline transactions. FTC Chair Lina Khan stated that the rule is an overdue response to deceptive business practices that trap consumers in unwanted subscriptions. The rule will take effect 180 days after publication, providing significant relief to consumers frustrated by complicated cancellation processes.