US Federal Trade Commission has proposed a “click to cancel” provision requiring sellers/subscribers to make it as easy for consumers to cancel their enrollment as it was to sign up.
The FTC said this is one of several significant updates the Commission is proposing to its rules regarding subscriptions and recurring payments. In a statement released, it said the new click-to-cancel provision, along with other proposals, would go a long way to rescuing consumers from seemingly never-ending struggles to cancel unwanted subscription payment plans for everything from cosmetics to newspapers to gym memberships.
“Some businesses too often trick consumers into paying for subscriptions they no longer want or didn’t sign up for in the first place,” said FTC Chair Lina M. Khan. “The proposed rule would require that companies make it as easy to cancel a subscription as it is to sign up for one. The proposal would save consumers time and money, and businesses that continued to use subscription tricks and traps would be subject to stiff penalties.”
The proposal received strong endorsement from President Joe Biden, who tweeted on his official handle saying too often companies make it difficult to unsubscribe from a service. Adding that it shouldn’t be harder to cancel a service than subscribing for it.
