{"id":59347,"date":"2024-10-17T09:28:27","date_gmt":"2024-10-17T08:28:27","guid":{"rendered":"https:\/\/dataconomy.com\/?p=59347"},"modified":"2024-10-17T09:28:27","modified_gmt":"2024-10-17T08:28:27","slug":"ftc-click-to-cancel-rule-negative-option","status":"publish","type":"post","link":"https:\/\/dataconomy.com\/2024\/10\/17\/ftc-click-to-cancel-rule-negative-option\/","title":{"rendered":"FTC\u2019s Click-to-Cancel rule is ending the subscription trap"},"content":{"rendered":"

The Federal Trade Commission (FTC) has introduced<\/a> a new \u201cClick-to-Cancel\u201d rule aimed at simplifying the process of canceling subscriptions. The rule ensures that canceling a service will be just as easy as signing up for it, addressing widespread complaints about the difficulties consumers face when trying to end recurring payments.<\/p>\n

From Click-to-Sign-Up to Click-to-Cancel<\/h2>\n

Let\u2019s get one thing straight: companies have been playing dirty. They\u2019ve made it easy to sign up for their services\u2014just a click here and a tap there\u2014and boom, you\u2019re locked into a subscription. But when it comes time to cancel? It\u2019s like you\u2019re trying to break out of a bureaucratic maze. \u201cToo often, businesses make people jump through endless hoops just to cancel a subscription,\u201d said FTC Chair Lina M. Khan. \u201cThe FTC\u2019s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.\u201d<\/p>\n

The FTC\u2019s new rule levels the playing field, requiring companies to provide a cancellation option that\u2019s just as simple as the one they used to reel you in. Whether you\u2019re dealing with a streaming service, a gym membership, or an online magazine, canceling will soon be as easy as signing up.<\/p>\n

\"FTC\u2019s
The Federal Trade Commission (FTC) has introduced a new \u201cClick-to-Cancel\u201d rule aimed at simplifying the process of canceling subscriptions (Image credit<\/a>)<\/figcaption><\/figure>\n

The \u201cnegative option\u201d loophole is finally closing<\/h2>\n

The rule is about shutting down shady practices known as \u201cnegative option\u201d programs. These are the sneaky setups where companies treat your silence as consent to keep charging you. Whether it\u2019s automatic renewals, free trials that morph into paid plans, or subscriptions buried in fine print, negative option programs have been a thorn in consumers’ sides for years.<\/p>\n

As Erin Witte, Director of Consumer Protection for the Consumer Federation of America, bluntly put it: \u201cNo subscription business model should be structured to profit from a gauntlet-style cancellation process.\u201d With this new rule, the FTC is taking a sledgehammer to these deceptive practices. Companies will no longer be able to hide behind legalese or obscure terms that trap consumers in unwanted subscriptions.<\/p>\n

Under the new rule, companies are required to be upfront about their subscription terms, and they can\u2019t charge you unless you give explicit consent. This means no more fine print surprises or vague auto-renewal clauses. As Shennan Kavanagh from the National Consumer Law Center pointed out, \u201cPeople should be able to click to unsubscribe just as easily\u2014not spend months trying to cancel unwanted subscriptions.\u201d<\/p>\n

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FTC is hunting Amazon and judge approves it<\/a><\/strong><\/p>\n

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However, the Click-to-Cancel rule doesn\u2019t completely slam the door on corporate shenanigans. A proposal that would have forced companies to send consumers annual reminders about their subscription status didn\u2019t make the final cut. So, while it\u2019s now easier to cancel, companies are still free to try and sweet-talk you into staying before you pull the plug.<\/p>\n

The rule is a significant step in the right direction, but it\u2019s just the beginning. The FTC receives thousands of complaints every year about negative option programs, and the number has been steadily increasing. In 2024 alone, the agency was hit with nearly 70 complaints a day, up from 42 per day in 2021. The subscription trap is a billion-dollar industry, and companies won\u2019t give up their recurring revenue without a fight.<\/p>\n

Commissioner Lina Khan and her allies at the FTC are determined to keep pushing for consumer-friendly reforms. \u201cThe FTC\u2019s new rule is an important recognition of the struggles consumers have been facing to free themselves from hidden contract language and misleading practices,\u201d said Kavanagh. But as Kavanagh noted, there\u2019s still more work to be done. Congress and state legislatures may need to step in to provide even stronger protections for consumers.<\/p>\n

\"FTC\u2019s
The rule is about shutting down shady practices known as \u201cnegative option\u201d programs (Image credit<\/a>)<\/figcaption><\/figure>\n

What\u2019s next for consumers?<\/h2>\n

The Click-to-Cancel rule takes effect 180 days after it\u2019s published in the Federal Register, which gives companies some time to clean up their act. When it goes live, expect your subscription landscape to change dramatically. Whether you\u2019re a serial subscriber or someone who falls for the occasional free trial, canceling a service will soon be a pain-free process.<\/p>\n

No more waiting on hold, no more searching through endless account settings, and no more having to plead your case to some retention specialist. The days of subscription traps are numbered, and the FTC is leading the charge to give control back to consumers. As Kavanagh succinctly put it, \u201cWe hope the FTC does not close the door to future rulemaking and that Congress and the states will go further to provide consumers even more transparency and control.\u201d<\/p>\n

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Featured image credit: Kerem G\u00fclen\/Ideogram<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The Federal Trade Commission (FTC) has introduced a new \u201cClick-to-Cancel\u201d rule aimed at simplifying the process of canceling subscriptions. The rule ensures that canceling a service will be just as easy as signing up for it, addressing widespread complaints about the difficulties consumers face when trying to end recurring payments. From Click-to-Sign-Up to Click-to-Cancel Let\u2019s […]<\/p>\n","protected":false},"author":584,"featured_media":59350,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard","override":[{"template":"5","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","share_position":"float","share_float_style":"share-normal","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","number_popup_post":"1","show_author_box":"0","show_post_related":"1","show_inline_post_related":"0"}],"image_override":[{"single_post_thumbnail_size":"no-crop","single_post_gallery_size":"crop-715"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0"},"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[324],"tags":[1059],"coauthors":[9895],"class_list":["post-59347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry","tag-ftc"],"_links":{"self":[{"href":"https:\/\/dataconomy.com\/wp-json\/wp\/v2\/posts\/59347"}],"collection":[{"href":"https:\/\/dataconomy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dataconomy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dataconomy.com\/wp-json\/wp\/v2\/users\/584"}],"replies":[{"embeddable":true,"href":"https:\/\/dataconomy.com\/wp-json\/wp\/v2\/comments?post=59347"}],"version-history":[{"count":"1","href":"https:\/\/dataconomy.com\/wp-json\/wp\/v2\/posts\/59347\/revisions"}],"predecessor-version":[{"id":59352,"href":"https:\/\/dataconomy.com\/wp-json\/wp\/v2\/posts\/59347\/revisions\/59352"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dataconomy.com\/wp-json\/wp\/v2\/media\/59350"}],"wp:attachment":[{"href":"https:\/\/dataconomy.com\/wp-json\/wp\/v2\/media?parent=59347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dataconomy.com\/wp-json\/wp\/v2\/categories?post=59347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dataconomy.com\/wp-json\/wp\/v2\/tags?post=59347"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/dataconomy.com\/wp-json\/wp\/v2\/coauthors?post=59347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}