FTC ‘Click-to-Cancel’ Rule Update
Highlights
The Federal Trade Commission has finalized a rule requiring that canceling a subscription must be as easy as signing up, with enforcement beginning on March 31, 2025
NCTA – The Internet & Television Association and other stakeholders have filed a lawsuit challenging the rule, which could affect its enforcement and applicability
Despite the ongoing litigation, businesses should consider preparing to comply with the new requirements to avoid potential penalties
The Federal Trade Commission (FTC) recently finalized the “click-to-cancel” rule, a major update to the Negative Option Rule that requires subscription-based businesses to simplify cancellation processes. The rule mandates that canceling a subscription must be as easy as signing up. Enforcement is set to begin March 31, 2025, providing businesses limited time to comply with the new requirements.
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