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Trying to Ditch a Subscription? Sorry, FTC Just Punted 'Click to Cancel' Enforcement
The Federal Trade Commission (FTC) has delayed the enforcement of a new change to its rules that would make it easier for consumers to cancel their unwanted subscriptions.The amendment, also known as “click to cancel,” was signed in October 2024 under the Biden administration and was originally planned to take effect on May 14. But now it’s been delayed by an extra 60 days and is set to come into force on July 14.The amendment will require sellers to make it as easy for consumers to cancel their enrollment as it was to sign up. This means sellers will no longer be able to require people to talk to a live or virtual representative to cancel if they didn’t have to do that to sign up.Meanwhile, if a business is offering phone cancellation, it won’t be able to charge extra for that service, and it will be forced to answer the phone or take a message during normal business hours. The majority of the new rule targets a business practice known as “negative option programs,” which is when a business continues to charge you full price because you failed to take action on your subscription. For example, when your “free trial” of a service expires. Recommended by Our EditorsIn its official announcement, the FTC said the delay was to “ensure ample time for companies to conform their conduct to the Rule,” with the agency citing the “complexity of compliance.”Though not mentioned in the official announcement, the FTC's upcoming changes have received significant—if unsurprising—pushback from some parts of the corporate world.The FTC was hit by a lawsuit involving The Internet & Television Association (INTA), a trade body representing some of America's largest telecom and internet firms including Charter Communications, Comcast, Cox Communications, Disney Entertainment, and Warner Bros. Discovery. Reuters reported that the suit argued that the new "click to cancel" rule was an overstep of the FTC's authority and not supported by evidence.But though the upcoming rule is likely welcome news by many consumers, the FTC did indicate that rules are not necessarily set in stone going forward. The agency added that “if that enforcement experience exposes problems with the Rule, the Commission is open to amending the Rule to address any such problems.”
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