The Federal Trade Commission (FTC) has voted in favor of adopting a new rule that makes it easier for consumers to cancel subscriptions. This rule, known as “cancelation hassle” rule, allows for direct and smooth cancellation of subscriptions. The rule was first proposed last year and aims to prevent companies from providing misleading information about their services and recurring memberships, as well as the need to disclose the terms associated with these services.
According to “Phone Arena,” the new rule will make the subscription cancellation process as easy as the registration process. In this context, FTC Chairwoman Lena Khan confirmed that companies were taking advantage of consumers to make the subscription cancellation process complicated, and the new rule will curb the tricks some companies use in this regard.
However, the FTC did not adopt the final text of the rule as initially proposed. A requirement for companies to provide consumers with annual reminders for subscription renewal was eliminated. Another rule requiring sellers to obtain consumer consent before providing any reasons to continue paying subscription fees was also removed.
If there are no legal challenges to the FTC’s decision, the new rules are expected to go into effect after one hundred and eighty days of being published in the Federal Register.
