FTC's click to cancel proposal: The problem.
A short summary why the FTC proposes a click to cancel rule.
The FTC fully understands the appeal of free trials and recurring subscriptions for both buyers and sellers. However, they also recognize that these practices can be harmful to consumers when they are not provided with all necessary information, billed without their consent, or made to jump through hoops to cancel. Unfortunately, reports to the Federal Trade Commission (FTC) indicate that these issues have been hurting consumers for decades. See below the reasons behind the proposal, or move directly to the content of the FTC click to cancel proposal.
Many consumers have found themselves stuck with recurring payments for products or services they never wanted or intended to keep getting. These practices can be particularly frustrating when they are combined with marketing tactics that withhold crucial details from potential customers. In some cases, people have even been billed without their knowledge or consent, leading to financial difficulties and other problems.
While the FTC has taken steps to address these issues through law enforcement cases and rules, there is still work to be done. Despite the agency's efforts, many consumers continue to experience difficulties cancelling subscriptions and memberships. In some cases, sellers make it deliberately difficult or even impossible to opt-out, leaving people trapped in ongoing payment cycles.
As advocates for consumer rights, the FTC believes that everyone should have access to clear and transparent information about subscriptions and memberships. They also believe that consumers should have the right to easily cancel these services without facing unnecessary obstacles. That's why the FTC is working to introduce a click-to-cancel rule for subscriptions and memberships, which will simplify the cancellation process and give people greater control over their finances.
click-to-cancel.com is an independent website which shares this analysis and which supports the introduction of a click to cancel rule.