New rule makes it easier to cancel subscriptions, memberships: Here's what it means to you

The FTC announced this week that sellers will be required to make a 'click to cancel' option for consumers that is as easy to use as it was to initially sign up.AP

It will now be easier to cancel your subscriptions and memberships thanks to a new rule from the Federal Trade Commission.

The FTC announced this week that sellers will be required to make a 'click to cancel' option for consumers that is as easy to use as it was to initially sign up. For example, if a consumer signed up for a subscription on a website, they would need to be able to cancel it online rather than have to do it by phone or in person.

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"Too often, businesses make people jump through endless hoops just to cancel a subscription," said Commission Chair Lina M. Khan in a press release. "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."

The final rule is expected to go into effect in about six months, according to the commission.

The rule would also require sellers to get consent before making additional offers at the time of cancellation and will allow charges to immediately stop upon cancellation.

The agency said the rules are in response to thousands of complaints it receives each year regarding cancellation policies. According to the FTC, they received about 70 complaints a day this year on the issue.

A fact sheet detailing all the new changes can be at https://www.ftc.gov/system/files/ftc_gov/pdf/NegOptions-1page-Oct2024-v2.pdf