The Federal Trade Commission (FTC) has postponed the enforcement of the Negative Option Rule, designed to require businesses to simplify subscription cancellations. Initially effective on January 19, enforcement was already delayed once; it will now be extended by another 60 days to July 14. This rule mandates that companies offer an easy cancellation process similar to their signup process. The decision follows concerns over compliance complexities, and comes amid internal controversies regarding the composition of the FTC after the firing of two commissioners by President Trump.
Under the Negative Enforcement Rule, businesses would not be able to force customers to cancel subscriptions through a method different from the one they used to sign up.
The FTC traditionally has five commissioners - three from the president's party and two from the opposing party - but President Donald Trump fired the two Democratic commissioners in March.
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