FTC Implements 'Click to Cancel' Rule to Combat Subscription Traps! 🛑

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Summary:

  1. New Cancellation Rule
    The U.S. Federal Trade Commission has adopted a rule mandating that businesses make canceling subscriptions as easy as signing up.

  2. Consumer Consent Required
    The “click to cancel” rule requires retailers, gyms, and other businesses to obtain consumer consent for auto-renewals and free trials that convert to paid memberships.

  3. Easy Cancellation Process
    Businesses must ensure that the cancellation method is “at least as easy to use” as the signup process, addressing numerous consumer complaints about difficult cancellation practices.

  4. No More Bots
    The rule prohibits companies from forcing consumers to use chatbots or agents for cancellation if they signed up online, ensuring straightforward cancellation options.

  5. Highlighting Absurd Practices
    FTC Chair Lina Khan noted that the pandemic revealed how businesses create unnecessary obstacles for cancellation, reinforcing the need for this rule.

Read more at: Reuters

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