The Federal Trade Commission is proposing a new 'Click to Cancel' rule that would force companies to make it easier for consumers to drop unwanted subscriptions.
The new FTC rule, dubbed "Click to Cancel," would be designed to make it easier to cancel unwanted subscriptions, requiring businesses to make it just as easy to cancel and membership as it initially was to sign up.
"Too often, companies make it difficult to unsubscribe from a service, wasting Americans’ time and money on things they may not want or need. I support FTC's proposal requiring companies to fix this. It shouldn’t be harder to cancel a service than it was to subscribe for it."Subscription services have continued to grow in recent years, with the pandemic driving sales to services such as streaming services and fitness brands like Peloton.
"Too often, companies make it difficult to unsubscribe from a service, wasting Americans’ time and money on things they may not want or need," Biden said on Twitter. "I support FTC's proposal requiring companies to fix this. It shouldn’t be harder to cancel a service than it was to subscribe for it."the proposed rule could be on the hook for fines of $50,000 per violation, which Khan said "can quickly add up if you think about the number of consumers.
The rule would also include a way for consumers to get their money back when subscriptions they did not want and could not cancel were renewed.The proposed rule will still have to clear an open comment period and other hurdles before going into effect, but Khan expressed optimism that it will eventually become a reality.
"We are just doing our job, to protect consumers from unfair practices," she said. "We think we are firm legal ground."
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