United States To Implement 'Click To Cancel' Rule To Ban Subscription Traps

The Federal Trade Commission (FTC) of the United States announced it has finalized a proposal known as "click to cancel," which aims to make it easier for people to end subscriptions. The new rule, due to come into effect in around six months' time, will force firms to make subscription sign-ups and cancellations equally straightforward.

“Too often, businesses make people jump through endless hoops just to cancel a subscription," said FTC Commission Chair Lina Khan in a statement. "Nobody should be stuck paying for a service they no longer want," Lina Khan added. As per the new rule, businesses will be prohibited from forcing customers to go through a chatbot or an agent to cancel subscriptions that were originally signed up to using an app or website. For in-person signups, firms are required to provide means to cancel by phone or online.

According to a Reuters report, the rule requires retailers, gyms, and other businesses to get consumers' consent for subscriptions, auto-renewals, and free trials that convert to paid memberships. FTC says that the number of complaints regarding negative option and recurring subscription practices has been steadily increasing over the past five years. This year, the Commission received nearly 70 consumer complaints per day on average, up from 42 per day in 2021.