This is Lina M. Khan, chairwoman of the FTC.

“Some companies too often trick consumers into paying for subscriptions they no longer want or didn’t sign up for in the first place.” FTC Chair Lina M. Khan told reporters.

“The proposed rule would require companies to make unsubscribing as easy as signing up. The proposal would save consumers time and money, and companies that continued to use subscription tricks and cheats would be subject to stiff penalties. .”

With the cancellation rule, consumers will have easier and clearer access to cancel their subscriptions anywhere on the web.

The proposal also specifies that the cancellation process should be easy and simple, without the need to provide additional information or call customer service.

The rule is part of the FTC’s revision of the Negative Option Rule of 1973, which is used to combat deceptive practices related to subscriptions and memberships.

This FTC insight is an important step in ensuring that consumers have more control over their online subscriptions.

Consumers will have easier and clearer access to cancel their subscriptions, which could help reduce frustration and unwanted charges on their bank accounts.

Benefits of “Click to cancel”.

The FTC has a plan that would require companies to provide clear and complete cancellation information for recurring subscriptions, with clear definitions of the goods and services offered.

For their part, businesses should allow customers to cancel online. The FTC also plans to establish clear requirements and penalties for companies that continue deceptive practices on recurring subscriptions.

The rule will also benefit sellers of online services. By having a simpler and clearer cancellation process, consumers can have more confidence in the services offered and, therefore, be more likely to subscribe in the future.

The rule can also help sellers avoid unwanted charges and cancellations, which can have a negative impact on their business.

This cancellation action has received criticism from some quarters, who argue that the rule could be expensive and difficult for small online businesses to implement.

However, the FTC has noted that the rule will apply only to companies that offer online subscription services and that companies will have one year to implement the rule after its final approval.

The FTC is proposing some changes to “Click to Cancel.”

Although the FTC currently has several laws and regulations in place to protect consumers, they do not provide a uniform legal framework for consumers or the industry.

Therefore, the FTC has proposed specific changes detailed below:

• A simple cancellation mechanism: if consumers can’t easily leave any program whenever they want, the opt-out feature becomes nothing more than a way to continue charging them for the products they no longer want. To address this problem, the proposed rule would require companies to make canceling a subscription at least as easy as starting one. For example, if you can sign up online, you should be able to cancel on the same website, in the same number of steps.
• New requirements before placing additional offers: The proposed rule would allow sellers to submit additional offers or modifications when a consumer attempts to unenroll. Before launching, sellers should ask consumers if they are interested in hearing from them. In other words, a seller must accept a “No“by answer and by listening”No” must immediately implement the cancellation process.
• New requirements regarding reminders and confirmations: The proposed rule would require sellers to provide an annual reminder to consumers enrolled in negative choice programs involving anything other than physical goods, before they automatically renew.

The cancellation ruleClick to cancel”.

The proposed changes will have a significant impact on various subscriptions and online services, such as App Store apps and gym memberships.

The idea is crucial in allowing consumers to easily cancel their subscriptions online, which can benefit both sellers and consumers by increasing trust and reducing unwanted charges.

Although there has been criticism, the FTC has indicated that it will only apply to companies with online subscription services and will be given plenty of time to implement the rule.