Canceling subscriptions just became simpler for U.S. consumers, thanks to the Federal Trade Commission’s (FTC) new “click-to-cancel” rule. The regulation, announced to curb consumer frustration with complex cancellation processes, mandates that canceling a subscription must be as easy and require the same number of steps as signing up.
The rule addresses a common consumer grievance with “negative option” billing, where companies use hurdles like lengthy customer service calls or unclear online forms to make cancellations difficult. With an average of 70 daily complaints about deceptive subscription practices, the FTC made simplifying this process a priority. Starting in about 180 days, subscription providers, including gyms and cable services, will be required to offer straightforward cancellation options or face compliance fines.
FTC Chair Lina Khan emphasized the importance of transparent subscription management, stating, “Too often, businesses make people jump through endless hoops just to cancel.”
Businesses, however, are pushing back. Industry representatives argue that the regulation will increase compliance costs, potentially driving up subscription fees. They also fear that simplified cancellations could increase customer churn, disrupting revenue models for companies that rely on subscription retention. Some organizations, like those in cable and telecommunications, are even filing lawsuits to challenge the rule’s legality.
The “click-to-cancel” rule is part of a broader Biden administration effort to eliminate “junk fees” and strengthen consumer rights. While consumer advocates celebrate this development, it remains to be seen if businesses will comply smoothly—or if they’ll devise new barriers within the subscription process.
As the countdown to implementation begins, consumers can look forward to less hassle in canceling services they no longer want.
