The Federal Trade Commission in the USA has announced that it is planning to introduce new rules that would make subscriptions and recurring payments easier to cancel with a new Click to Cancel feature.
This would ensure that companies who offer subscription services and recurring payment have a system in place where their customers can easily cancel, this is a good move and it will be good for consumers.
“Some businesses too often trick consumers into paying for subscriptions they no longer want or didn’t sign up for in the first place,” said FTC Chair Lina M. Khan. “The proposed rule would require that companies make it as easy to cancel a subscription as it is to sign up for one. The proposal would save consumers time and money, and businesses that continued to use subscription tricks and traps would be subject to stiff penalties.”
The notice of proposed rulemaking announced today is part of the FTC’s ongoing review of its 1973 Negative Option Rule, which the agency uses to combat unfair or deceptive practices related to subscriptions, memberships, and other recurring-payment programs.
These programs are widespread in the marketplace and can provide substantial benefits to both consumers and businesses. But they can become problematic when marketers fail to make adequate disclosures, bill consumers without their consent, or make cancellation either difficult or impossible—such as by requiring customers to cancel in person or keeping them stuck on hold waiting to talk to customer service. Each year, the FTC receives thousands of consumer complaints about such practices.
You can find out more information about the Federal Trade Commission Click to Cancel plans over at their website at the link below.
Image Credit: James Yarema
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