The U.S. Federal Trade Commission (FTC) has created a new rule called ‘click to cancel’ to help people easily end their subscriptions. This rule means that companies must make it just as easy to cancel a subscription as it is to sign up for one.
Starting in about six months, businesses like gyms and online retailers must get customers’ permission before renewing subscriptions or changing free trials into paid ones.
FTC chair Lina Khan stated that many companies create complicated processes to make it hard for customers to cancel subscriptions, wasting their time and money. “Nobody should be stuck paying for a service they no longer want,” she added.
Under this new rule, customers won’t have to deal with chatbots or agents just to cancel a subscription they signed up for online. If they signed up in person, companies must let them cancel by phone or online.
Last year, the FTC took action against Amazon for making it hard for customers to cancel Prime subscriptions, claiming the website tricks customers into signing up.
Amazon has denied these claims. Similarly, the FTC has also sued Adobe for having complicated cancellation processes and hidden fees, which the company disputes.
This rule aligns with a new law in the UK that aims to protect consumers by ensuring they receive clear information about subscriptions and can easily cancel them when needed【source: BBC】.
https://www.bbc.com/news/articles/c07nlvmyl05o