FTC's Click to Cancel Rule: A Battle for Consumer Convenience
Matilda
FTC's Click to Cancel Rule: A Battle for Consumer Convenience
The Federal Trade Commission (FTC) recently introduced a new rule, aptly named "Click to Cancel," aimed at simplifying the process of canceling subscriptions for consumers. This rule, which is set to take effect in 180 days, requires businesses to offer the same cancellation method that was used for signing up. For instance, if a customer signed up for a service online, they must also be able to cancel online. However, this seemingly straightforward measure has sparked significant opposition from various industry groups, including those representing telecom companies, home security companies, and internet advertisers. These groups have filed a lawsuit against the FTC, seeking to prevent the enforcement of the Click to Cancel rule. Understanding the Click to Cancel Rule The Click to Cancel rule builds upon the existing Negative Option Rule, which prohibits businesses from charging customers for goods or services they did not explicitly order. By expanding the Negative Option Rul…
