Retailers and companies will be prohibited from deceiving customers about subscriptions under the “click-to-cancel” rule, which also mandates that they get agreement before charging for memberships, auto-renewals, and programs associated with free trials.
Businesses must make it as simple for customers to cancel subscriptions as it is to start them, according to the Federal Trade Commission’s (FTC) final significant rulemaking before the election on November 5.
According to the agency, the majority of the provisions go into effect 180 days after the rule is published in the Federal Register.
During this regulatory process, the FTC received over 16,000 public comments, according to a statement from FTC chair Lina Khan.
People talked about how difficult it has become to cancel a variety of subscriptions, including phone plans, medication, home repairs, gym memberships, and meal delivery services.
Americans will save time and money by avoiding these scams and traps, thanks to the FTC’s ruling. Ms. Khan went on to say that no one should be forced to pay for a service they no longer desire.
