FTC announces rule to make it easier to cancel subscriptions
The Federal Trade Commission is taking steps to make it easier for consumers to cancel digital subscriptions.
The department will soon implement a "final click to cancel rule," it announced Wednesday, which will require sellers to make it "as easy for consumers to cancel their enrollment as it was to sign up."
Most of the final rule’s provisions will go into effect 180 days after it is published in the Federal Register, the department said.
“Too often, businesses make people jump through endless hoops just to cancel a subscription,” FTC Chair Lina Khan said in a statement. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”
The new regulation is part of the FTC’s ongoing review of the Negative Option Rule, which aims to combat unfair or deceptive practices related to subscriptions, memberships, and other recurring-payment programs in the digital economy.
It comes as more major media and tech companies, such as Netflix, Disney and Warner Bros. Discovery, work to shore up their businesses around streaming and combat the amount of users who subscribe to a streaming or digital service for a short period of time before canceling, known as "churn rate."
A recent Deloitte study found the average household in the U.S. pays just more than $60 per month for four streaming services, The Hill previously reported.
Media business observers and government watchdogs have for years warned that an accelerating trend of consolidation in the tech and media space is likely to drive subscription costs up for news, sports and entertainment content and limit choices for consumers.
"While negative option marketing programs can be convenient for sellers and consumers, the FTC receives thousands of complaints about negative option and recurring subscription practices each year," the department said, noting the number of complaints it has been receiving has been steadily increasing over the past five years.
Date: |
Topics
-
Tech - ABC News
US agency adopts rule to make it easier for consumers to cancel unwanted subscriptions
The Federal Trade Commission has adopted a rule that will require businesses to make it easy for consumers to cancel unwanted subscriptions and memberships1 hour ago -
Top stories - NBC News
FTC moves to take the frustration out of canceling subscriptions for consumers
The Federal Trade Commission is announcing a finalized rule to make it easier for people to cancel subscriptions and memberships they just don’t want anymore.3 hours ago -
Business - Inc.
Steal This Neuroscientist’s Simple Trick for Making Tough Decisions Instantly Easier
A lot of complex neuroscience boiled down to one very simple and counterintuitive trick for better decision making.Yesterday -
Top stories - CBS News
FTC cracks down on fake reviews with new rule set to ban phony feedback
With up to 40% of online reviews found to be fake, the Federal Trade Commission is introducing a new rule to ban deceptive feedback. Nick Thompson, CEO of "The Atlantic," explains how it will work.2 days ago -
Politics - The Hill
CNBC host says Trump canceled interview
Former President Trump was set to appear on CNBC this week but ultimately canceled on the network, a leading anchor on the network said Tuesday. "Well, Trump canceled," CNBC's Joe Kernen said on ...Yesterday - Donald Trump -
Top stories - BBC News
Heavy rain brings widespread travel disruption
River levels are rising and properties are expected to flood in several parts of Wales.41 minutes ago -
World - ABC News
Congo cancels an auction for 27 sites earmarked for oil exploration
The government of Congo has canceled an auction for 27 sites earmarked for oil exploration, citing late submissions and a lack of competition2 days ago -
Tech - GameSpot
Bandai Namco Cancels Multiple Games, Lays Off Staff - Report
In a year flush with video-game-company layoffs and restructuring, Bandai Namco has reportedly canceled several titles including games featuring One Piece and Naruto licenses. In addition to ...Yesterday
More from The Hill
-
Politics - The Hill
Meat recall expands to almost 12 million pounds of products
BrucePac, a large producer of pre-packed meat and poultry, as expanded an existing recall to include the addition of almost 1.8 million pounds of ready-to-eat prodcuts distributed to schools, ...34 minutes ago -
Politics - The Hill
Biden announces $425 million security aid package for Ukraine
President Biden on Wednesday discussed U.S. support for Ukraine in its defense against Russian aggression during a call with Ukrainian President Volodymyr Zelensky and announced a new $425 million ...47 minutes ago - Joe Biden -
Politics - The Hill
Watch live: JD Vance courts voters in critical battleground Pennsylvania
Sen. JD Vance (R-Ohio), the running mate of former President Trump, is campaigning Wednesday afternoon in the crucial swing state of Pennsylvania. The vice presidential hopeful is expected to hit ...50 minutes ago -
Politics - The Hill
Former acting solicitor general warns of 'potential election crisis'
Former Acting U.S. Solicitor General Neal Katyal sounded the alarm Wednesday about potential dangers surrounding the 2024 election cycle, warning the "crisis" could be worse than the Jan. 6, 2021, ...57 minutes ago -
Politics - The Hill
Liz Cheney jumps into House races — for Democrats
Former Rep. Liz Cheney (R-Wyo.) is taking her anti-Trump crusade to the congressional battlefield, endorsing Democrats in a pair of contested House races in a sign that she sees the lower chamber ...1 hour ago