Today, New York Attorney General Letitia James, reminded New Yorkers about the importance of the Federal Trade Commission’s “Click-to-Cancel” rule. The new regulation is set to go into effect on July 14 and make it easier for consumers to cancel unwanted renewing services and subscriptions.
Companies will be required to make their cancelation process as easy as enrollment, allowing consumers to cancel the same way they used to sign up. The “cancel” option must be easy to find online, and consumers should not have to chat with a company representative before being able to cancel.
Businesses are also required to reform and present clear pricing, cancelation and renewal terms before accepting billing payments.
The FTC has been working on formalizing the rule since March 2023, when a public notice garnered 16,000 comments from consumers, state and local agencies, and trade groups.
The federal agency reported in 2024, they logged on average 70 consumer complaints per day from consumers regarding unwanted or difficult to cancel subscriptions and memberships.
Companies that violate the terms of the new rule can be subject to forms of restitution or civil penalties.
