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
-
News BriefFTC complaint accuses LA Fitness parent companies of blocking easy membership exits
The Federal Trade Commission filed a complaint against LA Fitness’ parent companies, citing difficulties canceling memberships, a month after a court blocked the agency’s click-to-cancel rule.
-
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.
More from Regulatory Policy
-
ArticleNavigating HHS and FDA’s overhaul of the food and beverage industry
Under the Trump administration, the Department of Health and Human Services and the Food and Drug Administration have been hellbent on eliminating synthetic food dyes from food and beverage products, forcing a jarring and costly overhaul with cascading impacts on the operations of the entire industry.
-
PremiumU.K. FCA establishes framework for unlisted companies to trade shares on a ‘buyer-beware’ basis
Private companies that are keen to trade their shares but do not wish to become listed have gained another way to trade their shares. The U.K. government completed its initial review and published rules for the system in June.
-
ArticleDOJ is ramping up, not ramping down, health care fraud enforcement
While the Trump administration may have shifted away from pursuing small, white-collar, financial crimes, its focus on health care fraud cases is as hot as ever.