A new rule is being introduced that will bring relief to everyone who has spent hours searching for the option to cancel a subscription.
The US Federal Trade Commission (FTC) has adopted a ‘click to cancel’ rule, which will force companies to make the cancellation process transparent and easy.
While the days of having to call to cancel may be gone (for most subscriptions), it can still be time-consuming and frustrating to find how to cancel, even online.
Cancellation Complaints Sky Rocket
The FTC has created the rule after feedback from more than 16,000 members of the US public. It adds that the number of complaints has been steadily increasing over the past five years. In 2024, it received nearly 70 consumer complaints per day on average compared to 42 per day in 2021.
“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said Commission Chair Lina M. Khan. “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.”
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Making Cancellations Simple
The new rule will push companies – including gyms and retail businesses – to make it easy to cancel but also they now have a responsibility to get consent before renewing subscriptions or before moving into a paid subscription from a free trial.
BBC News adds that the rule also stipulates that customers can’t be forced to try and cancel using an agent or chatbot but instead must be offered the option of speaking to someone from the company or cancelling using an easy-to-find online process.
Amazon Singled Out for Tricky Cancellation Process
Amazon has already been slapped on the wrist for its cancellation complications. The FTC said that the retail giant had used “manipulative” web designs to trick customers into automatically renewing Prime subscriptions.
BBC News reported at the time that the FTC also accused Amazon of “put[ting] customers seeking to cancel through a cumbersome “four-page, six-click, fifteen option” process, which the FTC said was known internally as “Iliad” in a nod to the Greek epic about the “long, arduous Trojan War”.”
The new rule is due to come into effect in around six months’ time.
