Earlier this month, the Federal Trade Commission (FTC) announced a new rule that will significantly impact commerce across America: the Click-to-Cance

The FTC's New Click-to-Cancel Rule, Amazon Prime, and the Future of Subscriptions

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2024-11-01 04:00:04

Earlier this month, the Federal Trade Commission (FTC) announced a new rule that will significantly impact commerce across America: the Click-to-Cancel rule. In this post, I'll break down the rule, explain why it was implemented through a case study based on active FTC litigation involving Amazon Prime, and explore its implications for the web and commerce.

The Click-to-Cancel rule requires companies to make it just as easy for consumers to cancel their subscriptions as signing up. The goal of the rule is to protect consumers from manipulative tactics designed to trap them in subscriptions they no longer want or need. According to FTC Chair Lind Kahn:

This simple rule follows the goals and philosophy of the CAN-SPAM Act (2003), which required email marketers to provide clear and easy ways to unsubscribe to counter the acceleration of spam. The Click-to-Cancel Rule is part of a broader effort by the FTC to address rising concerns about "dark patterns"—deceptive design tactics meant to manipulate users into making decisions they wouldn't otherwise choose.

It was clear some regulation was coming. In 2022, the FTC released a report on the rise of dark patterns, concluding that techniques used to trick or trap consumers were on the rise. In 2023, the FTC sued Amazon for using dark patterns with Amazon Prime.

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