FTC wants new Click-to-Cancel feature for subscriptions

The Federal Trade Commission in the United States has announced plans to introduce new rules that will make it easier to cancel subscriptions and recurring payments with a new Click-to-Cancel feature.

This would ensure that companies that offer subscription services and recurring payments have a system in place to make it easy for their customers to cancel, it's a good decision and it will be good for consumers.

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"Some companies are too often urging consumers to pay for subscriptions they no longer want or haven't purchased," said FTC Chairman Lina M. Khan. “The proposed rule would require companies to make it as easy to cancel a subscription as it is to sign up for it. The proposal would save consumers time and money, and companies that continue to use subscription tricks and traps would face stiff penalties. »

The Notice of Proposed Rulemaking announced today is part of the FTC's ongoing review of its 1973 Negative Option Rule, which the agency uses to combat unfair practices or misleading claims related to subscriptions, memberships and other recurring payment programs.

These programs are widespread in the market and can provide substantial benefits to consumers and businesses. But they can become problematic when marketers fail to make adequate disclosures, charge consumers without their consent, or make cancellation difficult or impossible, such as asking customers to cancel in person or keeping them on hold for talk to customer service. Each year, the FTC receives thousands of consumer complaints about such practices.

You can find more information about the Federal Trade Commission's Click to Cancel plans on their website at the link below.

Source FTC

Image credit: James Yarema

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