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US court strikes down 'click-to-cancel' rule designed to make unsubscribing easy
Rule would have kept businesses from forcing customers through lengthy chats or other barriers to cancellation
The vacated rule meant to go into effect on 14 July would have covered all forms of negative option marketing – programs that allow sellers to interpret customer inaction as acceptance of subscriptions, often leading to unintended charges. Meanwhile, Letitia James had been encouraging consumers to prepare for the rule’s implementation, writing in a Tuesday press release that “New Yorkers should never have to jump through hoops just to cancel an unwanted subscription”. Similar state rules had yielded results in New York, where James says she’s secured $600,000 in penalties from Equinox for making cancellations difficult and won a lawsuit against SiriusXM for trapping customers in unwanted subscriptions.
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