FTC’s ‘Click to Cancel’ rule targets subscription headaches for consumers
Soon, it may be a whole lot easier to cancel subscriptions and memberships – for the gym, phone plans, streaming services, meal delivery kits, medication, and more.
It’s because of a new rule from the Federal Trade Commission called "Click to Cancel," which requires businesses to make it as easy to cancel a subscription as it is to sign up for one.
"Too often, businesses make people jump through endless hoops just to cancel a subscription," FTC Chair Lina M. Khan said in a press release. "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."
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New 'click-to-cancel' rule will make it easier to end unwanted subscriptions
The days of jumping through hoops to cancel a subscription could be behind us in about six months.
In Northwest D.C. Wednesday, person after person told FOX 5 they’ve personally experienced the problem before.
"I had like a clothing subscription that I signed up as a member, so I could get the first month free, and then I was having a lot of trouble cancelling before they renewed my membership," explained Elissa Alarani, who added that she signed-up online but soon realized she couldn’t cancel her subscription the same way.
Multiple streaming services have raised subscription prices or incorporated ads into the platform in recent months. ((Photo by Chesnot/Getty Images)
Officials said the number of complaints about the issue has steadily increased over the years, with the FTC fielding 70 complaints per day in 2024, up from 42 per day in 2021.
Still, "Click to Cancel" has been met with opposition, including from the U.S. Chamber of Commerce. The group released a statement Wednesday, saying in part, "The FTC’s expansive subscription rule is the latest power grab by the Commission in its pursuit to micromanage business decisions. Not only will this rule deter businesses from providing sensible, consumer-friendly subscriptions, but it will leave Americans with fewer options, higher prices, and more headaches."
Most of the rule’s new requirements are set to go into effect in about six months.