The Federal Trade Commission has approved a “click-to-cancel” rule that mandates providers to make canceling subscriptions as easy as signing up for them, aiming to prevent companies from misleading consumers about recurring services. Chair Lina Khan stated that the rule would eliminate unnecessary obstacles and save time and money for Americans. Despite receiving over 16,000 comments, the FTC decided not to include reminders for subscription renewals or require consent before informing customers about potential changes in the final ruling. Commissioner Rebecca Slaughter’s statement clarified the lack of authority under the FTC Act for renewal notifications, suggesting that state and federal lawmakers could implement such requirements. The rule will take effect 180 days after being published in the Federal Register, pending any legal challenges like the injunction against banning noncompete clauses earlier in the year.
