FTC “Click-To-Cancel” Rule For Subscriptions Going Into Effect In Six Months

The Federal Trade Commission has released a final version of its Click-to-Cancel rule, requiring companies to make it at least as easy to cancel memberships and subscriptions as it was to sign up.

The rule bars businesses from making people “jump through endless hoops” to cancel recurring payments.

It requires retailers, gyms and other businesses to get a consumer’s consent for memberships, subscriptions, auto-renewals and free trials that convert to paid memberships.

The FTC says the number of complaints it gets about recurring subscriptions has been steadily increasing for five years.

The FTC also reports it now gets an average of 70 consumer complaints a day — up from 42 a day in 2021.

Most of the rule’s provisions will go into effect in six months.