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Court cancels consumer-friendly click-to-cancel rule


A federal appeals court has blocked enforcement of a Federal Trade Commission rule that prohibited companies from making it harder for consumers to cancel.

But as Checkbook previously reported, the FTC created the rule after receiving thousands of complaints a year about the tedious and time-consuming roadblocks customers encountered when trying to cancel subscriptions. Companies that offered subscriptions would also be required to “clearly and conspicuously” disclose important information, including the amount of recurring charges and the frequency, the deadline to cancel, and when the initial price might increase. One reason many companies already shifted toward consumer-friendly cancellation policies is that California and New York enacted state laws that provide similar protections to those that would have been required by the FTC’s rule.

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