The FTC is making it easier to cancel subscriptions. Its new “click to cancel” rule requires companies to make canceling a subscription as easy as the signup process.
Currently, canceling a subscription often requires multiple steps, with some companies making customers jump through unnecessary hoops.
‘Click to cancel’ will make canceling subscriptions simpler
Signing up for an online service is easy — you just need to enter your name, email address, and card details. However, canceling the same subscription sometimes requires navigating deep and complex menus and clicking cancel multiple times.
The Federal Trade Commission’s “click to cancel” rule forces online services and businesses to revisit their subscription cancellation process and make canceling a subscription equally simple. As the FTC puts it, the rule “requires sellers to provide consumers with simple cancellation mechanisms to immediately halt all recurring charges.”
In addition, the new rule requires retailers, businesses and gyms to obtain explicit consumer consent before converting a free trial into a paid subscription. The same rule applies to membership renewal.
FTC’s Chair Lina M. Khan said, “Too often, businesses make people jump through endless hoops just to cancel a subscription. 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.”
No need to talk to a chatbot to cancel a subscription
As per the rules, businesses can’t force users to go through a chatbot or helpline to cancel their subscriptions. The FTC has already sued Adobe for such practices, as they made canceling a membership unnecessarily complicated. In some cases, users were forced to talk to a chatbot and did not get a prorated refund.
The new rules require sellers to provide all relevant information and obtain informed consent from users for a subscription.
The Federal Trade Commission first proposed the rule in March 2023 and received over 16,000 comments from the public, consumer groups and federal bodies. The “click to cancel” rule will take effect 180 days after its publication in the Federal Register.
It’s easy to dump unwanted App Store subscriptions
The App Store makes it a snap for iPhone, iPad and Mac users to see what subscriptions they currently have and what they cost. There’s also that “click to cancel” option the FTC wants for all subscriptions.
Read the Cult of Mac guide to dumping unwanted App Store subscriptions for step-by-step instructions.
Of course, this isn’t a panacea. That subscription you signed up for outside of the App Store for a streaming service, a magazine or a gym membership isn’t included. That’s where the FTC rule comes in handy.
Ed Hardy contributed to this article.
