Oct 16, 2024 - Business

FTC finalizes rule that makes canceling subscriptions easier

Kelly Tyko

Federal Trade Commission Building — The FTC finalized the "click-to-cancel" rule. Photo: Ting Shen/Bloomberg via Getty Images

The Federal Trade Commission announced Wednesday that it has finalized a "click-to-cancel" rule to make it easier to cancel unwanted subscriptions.

Why it matters: Cutting out the loopholes to cancel a gym membership or online subscription can save consumers time and money.

The big picture: The FTC rule requires companies to make canceling a subscription or service as easy as signing up for one.

If you sign up online, there needs to be a click to cancel.
If you signed up in person, there has to be a way to cancel online or over the phone, according to an FTC fact sheet.
Most of the final rule's provisions will go into effect 180 days after it is published in the Federal Register, the FTC said.

What they're saying: "Too often, businesses make people jump through endless hoops just to cancel a subscription," FTC chair Lina Khan said in a statement.

"The FTC's rule will end these tricks and traps," Khan said. "Nobody should be stuck paying for a service they no longer want."
"The new rules give consumers more freedom to switch providers, read a different news service, buy a different pet food or none at all," Teresa Murray, consumer watchdog director at Public Interest Research Group, said.

Flashback: The Biden administration launched a governmentwide effort in August called "Time Is Money" to "crack down on everyday headaches and hassles" that Americans face including getting rid of junk fees.

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FTC finalizes rule that makes canceling subscriptions easier

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