FTC proposed a ‘click to cancel’ provision
FTC proposed allowing consumers to ‘click to cancel’ recurring subscriptions and memberships.
The Federal Trade Commission (FTC) proposed a ‘click to cancel’ provision to make it equally easy for consumers to cancel as is to sign in. The proposed rulemaking is part of FTC’s ongoing review of the 1973 Negative Option Rule, which is used to fight against unfair or deceptive practices about subscriptions, memberships, and recurring-payment programs.
The key proposed changes are:
• make the cancellation process easy as it was to start it;
• when a consumer asks to cancel the service, before making additional offers, sellers must first ask consumers whether they want to hear them;
• new requirements about reminders and confirmations.
After the publication in the Federal Register, consumers can submit comments.