FTC Enforces Click-to-Cancel Subscription Rule

The Federal Trade Commission (FTC) has finalized a 'click to cancel' rule, mandating that businesses simplify the cancellation process for subscriptions, making it as easy as signing up. This policy, which will take effect 180 days after publication, aims to eliminate complex cancellation procedures that often trap consumers in unwanted subscriptions. FTC Chair Lina Khan emphasized that the rule is designed to save consumers time and money, addressing widespread complaints about the difficulty of canceling services. The ruling has received mixed responses, with some businesses, including the U.S. Chamber of Commerce, arguing it could lead to higher costs and more government interference. The decision follows a surge in consumer complaints related to subscription cancellations, highlighting the need for clearer processes. The rule will apply to various industries, including streaming services, gyms, and food delivery companies.