The Federal Trade Commission's new “click-to-cancel” rule mandates easier subscription cancellations forcing businesses to provide simple cancellation options, facing penalties for non-compliance.
The agency’s regulation is aimed at subscriptions and memberships that automatically renew unless a consumer takes action to cancel them. Businesses will have to offer a cancellation method that is “easy to find when the consumer seeks to cancel,” the regulation says, without dictating what the option has to look like. Consumers routinely complain that businesses introduce friction into the cancellation process in an effort to retain them. Customer-service agents often try to cajole customers into not giving up a membership, sometimes offering discounts if they remain.