New FTC rule aims to make it easier to cancel subscriptions

WASHINGTON (NEXSTAR) — The Federal Trade Commission adopted a final rule Wednesday that will require businesses to make it easy for consumers to cancel unwanted subscriptions and memberships.

“Not being able to cancel any subscriptions, especially for months at a time, that can really add up,” Jon Donenberg from the National Economic Council said.

To help address that, the Federal Trade Commission says it will now require businesses to make it as easy for consumers to cancel subscriptions and memberships, as it was to sign up.

“So if you sign up online with one click, you ought to be able to cancel online with one click,” Donenberg said.

Donenberg says the rule will crack down on companies misleading people about subscriptions and require them to obtain consumers’ consent before charging for memberships, auto-renewals and programs linked to free trial offers.

“When they decide they no longer want to buy something, they ought to be able to turn off those subscriptions,” Donenberg said.

The U.S. Chamber of Commerce calls the new rule a government power grab and an effort to micromanage private businesses.

“What we’re seeing from this Federal Trade Commission, under this administration, is a keenness to expand their power and to grow government,” Robert Winterton of NetChoice said.

NetChoice represents members of the online business community. Winterton says canceling services is not that hard.

“Most subscriptions are very, very easy to cancel. Those that are more difficult, such as cable, for example, can be canceled, by the use of something like AI, at the request of the subscriber,” Winterton said.

The new rule will take effect in April of 2025.

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