What the Tech? FTC’s New “Click to Cancel” Rule
(ABC 6 News) – The Federal Trade Commission (FTC) has introduced a new policy that aims to simplify the
often frustrating process of canceling online subscriptions and services. Dubbed the “Click to
Cancel” rule, this regulation will require companies to make it as easy to cancel a subscription
as it is to sign up for one.
Currently, many companies bury the cancellation option deep within account settings, making it
difficult to find. Some even force customers to call customer service and endure lengthy hold
times and persuasive sales pitches just to cancel. This can lead to unwanted charges and a
sense of being trapped in unwanted subscriptions.
This is a welcomed relief for consumers who’ve been forced to call a company to cancel. Does
this sound familiar?
You: “I’d like to cancel my subscription”
Company: I’m sorry to hear that. May I ask why?
“I just want to cancel”
“Okay, let me get you over to our retention department.”
5 minutes later:
“Hello, how can I help you?”
“I’d like to cancel.”
“I’m sorry to hear that, may I ask why”
“I just want to unsubscribe”
“I see, would you be interested in a 30% discount?”
“No…I want to cancel.”
“I see. Before I help you with that, I’d like for you to talk with my retention department
supervisor.”
The FTC said it received over 16,000 complaints from consumers who say it’s nearly impossible
to cancel a subscription or service.
The new rule will change this by mandating that companies provide a clear and easily
accessible “Click to Cancel” button in a prominent place, such as on the account management
page or the subscription confirmation email.
The FTC believes this new requirement will save consumers time and money. By making it
easier to cancel unwanted subscriptions, consumers will be less likely to continue paying for
services they no longer use. This will also help to prevent the unpleasant surprise of unexpected
charges on their credit card statements.
The new regulation will not take effect immediately. The FTC is giving companies 180 days to
make the necessary changes to their websites and cancellation processes. In the meantime,
consumers are encouraged to report any companies that do not comply with the new rule once
it comes into effect.