New Click-to-Cancel Rule

Last month, the FTC finalized the “click-to-cancel” rule to make it easier for consumers to end subscriptions and memberships. Businesses that use “negative option marketing” should adjust their business practices to avoid noncompliance with the new rule. A “negative option marketing” broadly refers to a category of commercial transactions in which sellers interpret a customer’s failure to take an affirmative action, either to reject an offer or cancel an agreement, as assent to be charged for goods or services. Be sure there’s a simple way for consumers to cancel. Violators may be liable for civil penalties. The rule takes effect on April 14, 2025. #IdeaoftheDay