FTC final ‘Click to Cancel’ Rule requires disclosure of material facts before enrollments

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.