US News: New Regulation Makes Canceling Unwanted Subscriptions Easier in the United States
A new rule that will require businesses to simplify the process for customers to cancel unwanted subscriptions and memberships is set to be implemented in the US.
The “click-to-cancel” rule will prohibit retailers and businesses from deceiving consumers about subscriptions and will mandate them to obtain consent before charging for memberships, auto-renewals, and programs associated with free trials.
In its final major rulemaking before the 5 November election, the Federal Trade Commission (FTC) also stipulated that businesses must allow customers to end subscriptions as easily as they start them.
Most provisions will come into effect 180 days after the rule is published in the Federal Register, according to the agency.
“Throughout this rulemaking process, the FTC received over 16,000 public comments,” stated FTC chair Lina Khan.
“People shared their struggles in cancelling various subscriptions-from gym memberships and meal delivery kits to medication, home repairs, phone plans, and more.
“The FTC’s rule aims to eliminate these deceptive practices, saving Americans time and money. No one should be obligated to pay for a service they no longer desire,” added Ms. Khan.
Lina Khan. File Pic: AP
She also pointed out how the pandemic magnified these issues, such as necessitating in-person cancellations while businesses were closed.
Keep up with all the latest news from the UK and around the world by following Sky News
The FTC proposal was included in the Biden administration’s ‘Time is Money’ initiative.
Announced in August, this initiative aims to address consumer-related hassles.
The US Chamber of Commerce criticized the administration’s approach, stating in August that “heavy-handed regulations that micromanage business practices” will result in higher costs for consumers.
Read more from Sky News:
David Cameron opens up about son’s death
US launches airstrikes against Houthis
Democratic presidential nominee vice president Kamala Harris highlighted the “click-to-cancel” rule last month as a policy she would pursue if elected.
FTC commissioners passed the final rule on a 3-2 vote.
