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The End of Subscription Creep: New FTC Rule Simplifies Canceling Subscriptions

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2024-10-18 04:00:02

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The long-awaited Federal Trade Commission's "click to cancel" rule has been finalized. That means canceling your subscriptions is about to get easier.

The average consumer spends about $91 on subscriptions each month, according to a CNET survey about subscription creep. Stopping an unwanted subscription or membership with one click (and not feeling misled to enroll in the first place) can help you keep more cash in your pocket.

The "click to cancel" rule will apply to most "negative option" marketing, where a company interprets a customer's failure to explicitly decline or opt out as an agreement to be billed for goods or services. Charging consumers for a recurring membership or subscription without appropriate disclosures -- or without their consent -- can put them at serious financial risk.

"Too often, businesses make people jump through endless hoops just to cancel a subscription," Commission Chair Lina M. Khan said in Wednesday's announcement. "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."