FTC ‘click to cancel’ proposal harmful to businesses, companies argue
By 
Adrianne Appel2024-01-17T22:06:00
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.
Related articles
-
ArticleMatch.com agrees to pay $14 million in FTC settlement over subscription practices
Match.com, the online dating site, will pay $14 million and make changes to its membership terms to settle allegations that it made cancellations difficult and made misrepresentations to members, the Federal Trade Commission said Tuesday.
-
News BriefCongress introduces bipartisan Unsubscribe Act after FTC Click-to-Cancel setback
Two senators introduced a bipartisan bill to create new rules for subscription-based businesses, aiming to increase transparency and fairness after a federal judge blocked the Federal Trade Commission’s “click-to-cancel” rule from nearly two years ago.
-
PremiumFTC final ‘Click to Cancel’ Rule requires disclosure of material facts before enrollments
Tthe Federal Trade Commission, after years of public comments and changes, released a final “Click to Cancel” Rule, which requires a customer’s express consent before they can be charged and prohibits practices that make it difficult for a customer–whether a family or another business–to cancel.
More from Regulatory Policy
-
ArticleDigital wallets to speed up regulatory checks for recruitment, property transactions
You can already buy a coffee with your phone, but soon you could start a job or buy a house with it. Digital compliance wallets holding certificates and documents on smartphones are gaining traction worldwide.
-
ArticleU.K. delays audit reforms even as regulator piles on financial pressure
Delays to the U.K.’s Audit Reform and Corporate Governance Bill and creation of the ARGA regulator have sparked criticism. On Sept. 8, 66 MPs sent a letter to the Prime Minister urging reforms be returned to the Parliamentary agenda.
-
News BriefFTC ends appeal over noncompete ban but seeks public input
The FTC officially withdrew its appeal in a federal court case over its ban on employer noncompete clauses that it passed last year. The agency, however, says it wants public input regarding the effects of employer noncompete agreements.