FTC Reveals New Rule In Regards To Subscriptions

'Click to Cancel' will require retailers, gyms and other businesses to make canceling subscriptions as east as enrolling in them.

The Federal Trade Commission revealed a new rule amid high volumes of complaints.

Federal regulators reported they receive around 70 complaints a day regarding charges for subscriptions that are either a lengthy frustrating process to cancel or that people didn’t realize they accepted to begin with.

Before the new rule, to cancel memberships for health clubs you had to do so by mail or in person. Cable subscription cancellations involve long calls to customer service and persuading.

Now, the ‘Click to Cancel’ rule will require retailers, gyms and other businesses to make canceling subscriptions as east as enrolling in them.

The rule says online subscriptions should require the same amount of clicks to end as it did to sign-up. in-person sign-ups should now have the option to cancel online or over the phone.

Companies must now also give people direct and clearer information of the exact terms they sign up for.

The Biden administration promoted the rule as part of it’s campaign against junk fees.