The Federal Trade Commission (FTC) has proposed a new rule that would make it easier for consumers to cancel free subscriptions. The so-called "click to cancel" provision requires sellers to make it as easy for users to cancel subscriptions as it was to subscribe.
“Some businesses too often trick consumers into paying for subscriptions they no longer want or didn’t sign up for in the first place,” said FTC Chair Lina M. Khan, in a press release. “The proposed rule would require that companies make it as easy to cancel a subscription as it is to sign up for one. The proposal would save consumers time and money, and businesses that continued to use subscription tricks and traps would be subject to stiff penalties.”
Specifically, it would require a simple cancellation mechanism and force companies to provide annual reminders to members before renewing their subscription and ask consumers for consent before pitching them additional offers when they try to cancel.
The rule would fall under the 1973 Negative Option Rule, which the FTC has been increasingly referencing to establish new rules for unfair aspects of the digital economy such as subscriptions, memberships, and recurring-payment programs.
The agency explained that these types of programs become a problem when marketers "fail to make adequate disclosures, bill consumers without their consent, or make cancellation either difficult or impossible—such as by requiring customers to cancel in person or keeping them stuck on hold waiting to talk to customer service."
The FTC said it receives thousands of consumer complaints each year about these practices.
The Biden administration says electric vehicles made with battery materials from China will not be eligible for the full EV tax credit under new proposed rules.
You may soon be able to charge your car while driving. Cheddar News explains.
Google is moving forward with its previously-announced plan to delete inactive accounts and all associated data.
The network of nearly 4,800 fake accounts was attempting to build an audience when it was identified and eliminated by the tech company, which owns Facebook and Instagram.
Someone in China created thousands of fake social media accounts designed to appear to be from Americans and used them to spread polarizing political content in an apparent effort to divide the U.S. ahead of next year's elections, Meta said Thursday.
Elon Musk had some harsh words for advertisers who have left his platform X over rising hate and anti-Semitism on the platform, formerly known as Twitter.
The first commercial airliner to cross the Atlantic on a purely high-fat, low-emissions fuel flew Tuesday from London to New York in a step toward achieving what supporters called “jet zero."
A new study examined the link between mental health and internet use and didn't find that it was consistently linked to negative psychological outcomes.
Amazon announced that it's launching 'Q,' a business ChatBot powered by generative AI tech similar to ChatGPT.
A ransomware attack has prompted a health care chain that operates 30 hospitals in six states to divert patients from at least some of its emergency rooms to other hospitals, while putting certain elective procedures on pause, the company announced.
