FTC final ‘Click to Cancel’ Rule requires disclosure of material facts before enrollments
By 
Adrianne Appel2024-10-17T12:59:00
After years of public comments and changes, the Federal Trade Commission (FTC) released a final “Click to Cancel” Rule Wednesday.
The long-awaited rule takes aim at the common, business practice of automatically renewing customer subscriptions, free trials, memberships and other recurrent payment programs. The rule requires a customer’s express consent before they can be charged and prohibits practices that make it difficult for a customer–whether a family or another business–to cancel.
The Click to Cancel Rule has been vehemently opposed by the International Franchise Association, the Interactive Advertising Bureau and other trade organizations.
Related articles
-
ArticleMatch.com agrees to pay $14 million in FTC settlement over subscription practices
Match.com, the online dating site, will pay $14 million and make changes to its membership terms to settle allegations that it made cancellations difficult and made misrepresentations to members, the Federal Trade Commission said Tuesday.
-
News BriefCongress introduces bipartisan Unsubscribe Act after FTC Click-to-Cancel setback
Two senators introduced a bipartisan bill to create new rules for subscription-based businesses, aiming to increase transparency and fairness after a federal judge blocked the Federal Trade Commission’s “click-to-cancel” rule from nearly two years ago.
-
News BriefFTC to monitor compliance at AI-enabled product review platform after misleading ratings
Artificial intelligence-enabled product review platform Sitejabber agreed to a 10-year compliance monitorship with the Federal Trade Commission following allegations that it inflated product ratings and misled the public.
More from Regulatory Policy
-
PremiumCompliance in the spotlight as tariffs, sanctions turn into geopolitical weapons
Navigating tariffs and sanctions is becoming a core part of compliance for many companies. As the U.S. and others use economic policies for political aims, compliance teams must adapt to this new geoeconomic trend.
-
News BriefEPA relaunches online portal for thousands of environmental guidance documents
The U.S. Environmental Protection Agency reopened its guidance portal on Wednesday. This online portal is a searchable database of EPA guidance documents, first created during President Donald Trump’s first term and shuttered under the Biden administration.
-
News BriefNine regulatory initiatives under SEC’s “Project Crypto” aim to redefine crypto market rules
Securities and Exchange Commission Chairman Paul Atkins has launched “Project Crypto,” a major regulatory overhaul aimed at shifting the agency from enforcement to innovation. Atkins’ address outlined as many as nine Commission-wide initiatives to revamp the SEC’s rulebook for the digital finance era.