'Click-to-Cancel' Rule Would Penalize Companies That Make You Cancel By Phone

Canceling a subscription should be just as easy as signing up for the service, the Federal Trade Commission said in a proposed "click-to-cancel" rule announced today. If approved, the plan "would put an end to companies requiring you to call customer service to cancel an account that you opened on their website," FTC commissioners said. From a report: The FTC said the click-to-cancel rule would require sellers "to make it as easy for consumers to cancel their enrollment as it was to sign up," and "go a long way to rescuing consumers from seemingly never-ending struggles to cancel unwanted subscription payment plans for everything from cosmetics to newspapers to gym memberships." The FTC said the proposed rule would be enforced with civil penalties and let the commission return money to harmed consumers. "The proposal states that if consumers can sign up for subscriptions online, they should be able to cancel online, with the same number of steps. If consumers can open an account over the phone, they should be able to cancel it over the phone, without endless delays," FTC Chair Lina Khan wrote. The FTC is seeking public comment on the proposal, which also includes other changes to the commission's 1973 Negative Option Rule. "Some businesses too often trick consumers into paying for subscriptions they no longer want or didn't sign up for in the first place," Khan said.

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