The FTC click to cancel proposal.

A short summary what the FTC proposal for a click to cancel rule means.

The Federal Trade Commission (FTC) has put forward a proposal to amend its Negative Option Rule with the aim of better protecting consumers from harmful subscription practices. The proposed amendments would bring a range of new requirements for sellers and marketers, all with the goal of making it easier for consumers to understand what they are agreeing to and to cancel subscriptions if they wish.

One key aspect of the proposed amendments is the prohibition of misrepresentations by sellers. This would prevent marketers from withholding important information or using deceptive tactics to get people to sign up for subscriptions or free trials. Additionally, the amended rule would require sellers to provide clear and transparent information to consumers about what they are agreeing to and what the terms of the subscription entail.

A significant aspect of the proposed amendments is the emphasis on making it easy for people to cancel their subscriptions. Under the amended rule, sellers would be required to offer simple and accessible cancellation options, such as online cancellation for subscriptions signed up for online. This would prevent consumers from having to jump through hoops or navigate complex cancellation processes just to end a subscription.

The proposed amendments would also set clear and enforceable requirements for websites to follow. These requirements would apply to all subscription features, regardless of the media in which they are marketed or sold, as long as you can sign up online. By establishing a set of clear rules for subscription practices, the FTC aims to prevent harmful practices from continuing and to give consumers greater protection.I

click-to-cancel.com is an independent website which shares this analysis and which supports the introduction of a click to cancel rule.