{"id":38852,"date":"2023-03-23T07:01:23","date_gmt":"2023-03-23T11:01:23","guid":{"rendered":"https:\/\/d56fg8tfg.fitnews.club\/finance\/federal-trade-commission-proposes-rule-provision-making-it-easier-for-consumers-to-click-to-cancel-recurring-subscriptions-and-memberships\/"},"modified":"2023-03-23T07:01:23","modified_gmt":"2023-03-23T11:01:23","slug":"federal-trade-commission-proposes-rule-provision-making-it-easier-for-consumers-to-click-to-cancel-recurring-subscriptions-and-memberships","status":"publish","type":"post","link":"https:\/\/d56fg8tfg.fitnews.club\/finance\/federal-trade-commission-proposes-rule-provision-making-it-easier-for-consumers-to-click-to-cancel-recurring-subscriptions-and-memberships\/","title":{"rendered":"Federal Trade Commission Proposes Rule Provision Making it Easier for Consumers to \u201cClick to Cancel\u201d Recurring Subscriptions and Memberships"},"content":{"rendered":"
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The Federal Trade Commission today proposed a \u201cclick to cancel\u201d provision requiring sellers to make it as easy for consumers to cancel their enrollment as it was to sign up. That is just one of several significant updates the Commission is proposing to its rules regarding subscriptions and recurring payments. The new click to cancel provision, along with other proposals, would go a long way to rescuing consumers from seemingly never-ending struggles to cancel unwanted subscription payment plans for everything from cosmetics to newspapers to gym memberships.<\/p>\n

\u201cSome businesses too often trick consumers into paying for subscriptions they no longer want or didn\u2019t sign up for in the first place,\u201d said FTC Chair Lina M. Khan. \u201cThe 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.\u201d<\/p>\n

The notice of proposed rulemaking<\/a> announced today is part of the FTC\u2019s 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.<\/p>\n

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\u2014such 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.<\/p>\n

The current patchwork of laws and regulations available to the FTC do not provide consumers and industry with a consistent legal framework. Accordingly, the proposal would make several specific changes, including implementing:<\/p>\n