The US Federal Trade Commission (FTC) announced the “click to cancel” rule that makes the process of canceling subscriptions you want to end.
Under the new rule, FTC forces companies to simplify the process of ending subscriptions, similar to options for sign-ups.
“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said FTC chair Lina Khan.
She continued, “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.”
This Commission-updated rule prohibits all negative marketing through agents, companies, or media. The final rule will take legal action in the following terms:
“When they want to end one subscription, they can shop for another, but it’s their decision,” she added. “That’s what a free market is really about, empowering individuals to make the decisions they want to make without these practices that get in their way.”
In addition to the lawsuit accused, Amazon and Adobe listed their names. Amazon’s website design forced customers to automatically renew their subscriptions and make it difficult to cancel it.
The FTC revealed that Adobe also tricks its customers and fails to provide clear terms and charges that would be applied during subscriptions.
Therefore, the Digital Markets, Competition and Consumers Act 2024 focuses on providing detailed and clear information to consumers before they enter into any policy and subscriptions.
