FTC ‘click to cancel’ proposal harmful to businesses, companies argue

A proposed “click to cancel” rule by the Federal Trade Commission (FTC) is not necessary, too broad, and would harm mom-and-pop companies, according to business allies and trade groups.

The business groups, including the Interactive Advertising Bureau and International Franchise Association, made their case against the FTC’s proposed amendments to its negative option rule at an informal hearing by the agency Tuesday. The hearing was held as the FTC prepares to move into final rulemaking on a proposal it says is necessary to halt deception around subscription services.

The proposed changes would modernize the agency’s 50-year-old subscriptions and recurring payments regulations, particularly regarding online purchases, and aim to make it easier for people to cancel subscriptions and be completely informed when they sign up for them.