FTC announces the “click-to-cancel” rule which requires companies to let you cancel any product as easily as you registered.
Any long or difficult cancelation processes will be illegal.
If you signed up with a click, they’ll have to let you cancel with a click.
Subscription services, including gym memberships, will be required to offer ‘one click to cancel’ with the new rule.
The rule will go into effect in 180 days after being published.
What Does This Mean for Consumers?
- Simplified cancellation processes
- No more forced phone calls or live chats to cancel
- Clear disclosure of subscription terms
- Proof of consent required for negative option programs
- Protection from unexpected charges
Who’s affected?
- Media & Streaming Services (Netflix, Disney+, HBO Max)
- Fitness Memberships (Peloton, Planet Fitness)
- Tech Services (Amazon Prime, Adobe, Microsoft Game Pass)
This can save hundreds of dollars a year, especially when it comes to sneaky free trials that suddenly turn into monthly charges.
Do a subscription audit.
Make a list of all your subscriptions and decide which ones you really need.
Cancel any subscriptions you don’t use.
Don’t be afraid to ask for refunds if you’ve been charged for subscriptions you couldn’t easily cancel.
Think of the last time you tried to cancel a streaming service, gym membership, or magazine subscription—you probably had to call, wait on hold, or navigate a maze of website links just to stop paying for something you no longer wanted.
With the new rule, businesses can’t force you to cancel through a more difficult process than what you used to sign up.
If you signed up online, you must be able to cancel online just as easily.
