The FTC's 'click-to-cancel' rule mandates that canceling subscriptions must be as easy as signing up, enhancing consumer rights and simplifying the cancellation process.
The CFPB asserts that subscription and membership models often mislead consumers, prompting them to file disputes when they find it difficult to cancel these recurring charges.
Recent FTC actions against companies like Adobe and Amazon expose deceptive practices that make it tough for consumers to cancel their subscriptions, highlighting a need for regulation.
The new rule eliminates deceptive cancellation practices, requiring businesses to allow consumers to cancel using the same method they used to sign up, promoting transparency.
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