FTC final ‘Click to Cancel’ Rule requires disclosure of material facts before enrollments

click_to_cancel_web

After years of public comments and changes, the Federal Trade Commission (FTC) released a final “Click to Cancel” Rule Wednesday.

The long-awaited rule takes aim at the common, business practice of automatically renewing customer subscriptions, free trials, memberships and other recurrent payment programs. The rule 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.

The Click to Cancel Rule has been vehemently opposed by the International Franchise Association, the Interactive Advertising Bureau and other trade organizations.

lock iconTHIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.