July 13, 2023

The Federal Trade Commission (FTC) is considering enacting a “Negative Option Rule” to make it easier for individuals to cancel subscriptions.

This regulation would require firms to properly and prominently display crucial subscription facts such as the trial period’s end date, the cancellation deadline, how frequently charges occur, payment dates, and cancellation information. Furthermore, before deploying a negative choice feature in a transaction, firms would need to get express approval from individuals.

To gather feedback, the FTC has solicited public comments on the proposed rules, aiming to avoid a repeat of the fake comments received during the net neutrality debate. Notably, the rules emphasize a “click-to-cancel” mechanism alongside other consumer protections.

Industry lobbying groups have weighed in on the proposed rule, with some expressing concerns that it would be too burdensome for businesses and could confuse consumers. The Internet & Television Association (NCTA) believes the rule would “burden, confuse, and harm consumers.” The Association of National Advertisers (ANA) also opposes the click-to-cancel requirement, arguing that it would lead to accidental cancellations.

The FTC is still considering the proposed rule, and it is not clear when it will be finalized.

The sources for this piece include an article in TheRegister.