The FTC just announced its final 'click-to-cancel' rules to make cancelling as easy as signing up

Key Takeaways

• New FTC rules ensure easy cancelation of subscriptions online, banning hidden buttons and misleading info.
• The rule aims to prevent businesses from trapping people in subscriptions or tricking them into signing up.
• Consumers can now make informed choices with clear terms and quick cancelation options.

It's been a long time coming, but the Federal Trade Commission (FTC) just made it easier to say goodbye to unwanted subscriptions. No more calling obscure call centers, hunting for hidden cancelation buttons, or jumping through hoops.

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The FTC's new 'click-to-cancel' rule applies to nearly all subscription services, regardless of the medium. It will also ban companies from misrepresenting information about their services, their prices, and the cancelation process. Now consumers can make informed choices thanks to clear and concise terms.

Here's why the FTC brought in the new rules

FTC Chair Linda Khan summarized the new rules best in a thread on X (formerly Twitter). Companies can no longer bill people who didn't know they had signed up for a subscription, and sellers have to make it easy to cancel a subscription. If someone signed up online, they need to be able to cancel online with a simple click. No hidden buttons.

The FTC received thousands of complaints about shady subscription practices, and these numbers have increased steadily over the past five years. The FTC fined Adobe earlier this year for their exorbitant cancelation fees, and sued Amazon last year for intentionally making it impossible for customers to cancel their Prime subscriptions.

This is what 'click-to-cancel' means for you

This is something the FTC has been working on for the past couple of years. California recently passed similar regulations for subscriptions, and the European Union has always been hard on shady subscription practices, with Germany passing tough legislation several years ago.

The new rules are laid out in a graphic Khan released on X.

• Important information must be truthful and easy to find.
• People have to know what they're agreeing to.

• There has to be a way to cancel that's as quick and easy as it was to sign up.

  • If someone signed up online, click to cancel applies.
  • If they signed up in person, click to cancel or over the phone applies.

Click-to-cancel is a step in the right direction to modernize the rules in the digital age. The next time you're thinking about signing up for a new service , remember the 'click-to-cancel' rule.