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FTC Takes on Subscription Traps With 'Click To Cancel' Rule

The U.S. Federal Trade Commission adopted a final rule on Wednesday requiring businesses to make it as easy to cancel subscriptions and memberships as it is to sign up, in the agency's last major rulemaking before the Nov. 5 election. From a report: The "click to cancel" rule requires retailers, gym...

The U.S. Federal Trade Commission adopted a final rule on Wednesday requiring businesses to make it as easy to cancel subscriptions and memberships as it is to sign up, in the agency's last major rulemaking before the Nov. 5 election. From a report: The "click to cancel" rule requires retailers, gyms and other businesses to get consumers' consent for subscriptions, auto-renewals and free trials that convert to paid memberships. FTC Chair Lina Khan said in an interview that the rule is an overdue response to a rising number of consumer complaints about situations in which it is "extraordinarily easy to sign up for a subscription, but absurdly difficult to cancel.

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