We're now living in a subscription-based world. Almost every application and service we use on our device requires a subscription to offer us a slew of extra perks. When the number of these subscriptions goes up, managing them and deciding which one you want to keep can be a real headache. Sometimes, the process of unsubscribing a service is so tedious that you would instead not go through it at all. However, this process might soon change thanks to FTC's initiative called "Click-to-Cancel."
The Federal Trade Commission (FTC) recently announced the final "Click-to-Cancel" rule, which has a simple goal: canceling a subscription must be as easy as signing up. The rule can potentially prevent companies from turning the unsubscription process into a labyrinth. The new rules go into effect in 180 days.
"Too often, businesses make people jump through endless hoops just to cancel a subscription," FTC Chair Lina M. Khan said. "The FTC's rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want."
Under the new law, sellers are prohibited from:
- Misrepresenting any material fact made while marketing goods or services with a negative option feature.
- Failing to clearly and conspicuously disclose material terms prior to obtaining a consumer's billing information in connection with a negative option feature.
- Failing to obtain a consumer's express informed consent to the negative option feature before charging the consumer.
- Failing to provide a simple mechanism to cancel the negative option feature and immediately halt charges.
The "Click-to-Cancel" initiative is part of the FTC's review of its 1973 Negative Option Rule. It takes a stance against deceptive tactics like "Call-to-Cancel," which requires customers to call a representative to cancel their subscription. The agency says it has received nearly 70 complaints per day on average from customers complaining about companies' negative option marketing programs.
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