Too often, businesses make people jump through endless hoops just to cancel a subscription. The FTC's rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.
According to a 2022 survey conducted by C+R Research, consumers on average underestimate the amount they spend monthly on subscription fees by more than 2.5 times, a finding that suggests people lose track of how much they're spending.
The trade watchdog's directive makes it a deceptive or unfair trade practice under Section 5 of the FTC Act: to misrepresent any material fact made while marketing using a negative option feature.
California legislation requires that companies offering automatic service renewals give consumers a way to cancel the subscription using the same medium used to sign up.
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