WASHINGTON—The Federal Trade Commission (FTC) has announced the final “click-to-cancel” negative option regulation covering online subscription services, according to reports.
The FTC published the final rule to the Federal Register with the majority of the rule’s provisions entering force 180 days after it is published to the public.
The “click-to-cancel” regulation requires sellers to make it easy for consumers to cancel their enrollment in online memberships, such as an adult membership site.
“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said Lina M. Khan, chair of the FTC. “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.”
In September, Gov. Gavin Newsom signed AB 2863 into law, clamping down on auto-renewing subscription services in the digital space of the country’s most populated state. This law requires companies offering automatic renewals and continuous services to provide customers with an easier way to cancel subscriptions in the same way.
According to Newsom’s office, this ensures that customers can easily exit services without being trapped in a confusing process to cancel or face hidden fees.
