Are you tired of struggling to cancel your subscriptions, only to find the cancellation button nowhere on the website or app? Well, the Federal Trade Commission (FTC) has heard your complaints and has proposed a solution.
The FTC is proposing a "Click to Cancel" rule that will require companies to make canceling subscriptions and memberships easier.
"What we're seeing is that some of these subscriptions make it very difficult for people to cancel," said Rosario Mendez, a representative from the FTC.
The new rule would require companies to make cancellations as easy as signing up. For example, if you sign up for a subscription online, you would be able to cancel it on the same website following the same number of steps.
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Additionally, businesses would have to get permission from consumers before suggesting additional offers or changes to their membership. If the consumer declines, the seller must cancel the subscription immediately.
The rule also proposes that businesses send an annual reminder before automatically renewing a subscription.
"For example, a subscription to a membership, to a gym or a subscription to receive a newspaper, anything that you are subscribed to and you're required to make an auto payment,” Mendez said.
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The FTC hopes that these changes will make it much easier for consumers to manage their enrollment services and reduce the number of complaints they receive.
"Businesses don't have to wait until this rule is in place. They can make changes now to the way that they offer cancellations to their subscriptions to make it easier for consumers," Mendez said.
People will soon have the opportunity to submit comments electronically before a final determination on the proposed rule is made. The FTC is interested in hearing from all communities about how this rule will impact them and says it will take all comments and feedback into consideration.
To stay up-to-date on when the comment period opens, you can sign up to get consumer alerts from the FTC.
