On October 16, the Federal Trade Commission announced its click-to-cancel policy. This policy prevents companies from using predatory tactics with subscription-based services. Previously subscription-based services could make it as difficult as they pleased to unsubscribe from their service.
This rule mandates that companies that offer these subscriptions make them able to be canceled with one easy click.
Under this rule, important product information must be truthful, clear, and easy to find. Users must know what they are agreeing to before they sign up, and sellers must be able to prove that. There always has to be a way to cancel that is as quick and easy as the signup process. Violators of these rules can be liable for redress and civil penalties.
Alongside the one-click cancellation policy, there are also rules to stop negative option marketing. An example of negative option marketing is when a company has a user sign up for a free trial and will bill them if they forget to cancel it.
While this may seem minor, over 40 percent of surveyed people said they had signed up for a free trial, forgot to cancel it, and were charged for it later. On top of that, the FTC reported that in 2024, on average, they received 70 complaints a day about recurring subscriptions along with negative option tactics.
This rule will go into effect within 180 days of October 26. An exact date was not stated.
