LOS ANGELES (CelebrityAccess) – The U.S. Federal Trade Commission (FTC) has introduced a new “click-to-cancel” rule that aims to simplify the process of canceling subscriptions, impacting major companies like Spotify, Apple Music, and Amazon Music. The rule, which takes effect 180 days after being published in the Federal Register, will require companies to make subscription cancellations as easy as signing up.
FTC Chair Lina M. Khan emphasized that this regulation targets “deceptive practices” that make it difficult for consumers to end subscriptions. “Too often, businesses make people jump through endless hoops just to cancel a subscription,” Khan said. “The FTC’s rule will end these tricks and traps, saving Americans time and money.”
The rule not only simplifies cancellations but also ensures companies can no longer misrepresent terms or charge customers without their clear consent. This regulation updates the FTC’s 1973 Negative Option Rule and is a response to the growing number of subscription-related complaints, which have surged to nearly 70 daily in 2024, up from 42 per day in 2021.
This mirrors global trends, as similar measures have been introduced in South Korea, where regulators have scrutinized the subscription practices of streaming giants. The FTC’s decision, approved by a 3-2 vote, follows public feedback and aims to protect consumers in the rapidly evolving digital economy.
