FTC ‘Click-to-Cancel’ Rule Finalized to End Recurring Subscriptions Easily
- Rule requires online cancellations, auto renew reminders
- Average American spends $273 a month on subscription services
The average American spent $273 a month on subscription services in 2021, up from $237 in 2018.
Photographer: Julia Schmalz/BloombergThis article is for subscribers only.
The Federal Trade Commission finalized a rule Wednesday requiring companies make recurring subscriptions as easy to cancel as they are to sign up for.
The rule, which will go into effect later this year, obliges companies that allow online sign-ups to also offer online cancellation options in just a few steps, rather than forcing customers to quit in person or over the phone. Companies would also have to send reminders before automatic renewals are billed.