\n<\/p>\n
The US Federal Trade Commission (FTC) has adopted a ‘click to cancel’ rule, which aims to make it easier for people to end subscriptions.<\/p>\n
It will force companies to make subscription sign-ups and cancellations equally straightforward.<\/p>\n
Businesses, including retailers and gyms, will also have to get consent from customers before renewing subscriptions or converting free trials into paid memberships.<\/p>\n
The new rule is due to come into effect in around six months’ time.<\/p>\n<\/div>\n
\u201cToo often, businesses make people jump through endless hoops just to cancel a subscription,\u201d said FTC chair Lina Khan. <\/p>\n
\u201cThe FTC\u2019s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.\u201d<\/p>\n
Under the new rule, businesses will be banned from forcing customers to go though a chatbot or an agent to cancel subscriptions that were originally signed up to using an app or website <\/p>\n
For memberships that customers signed up to in person, businesses will have to offer the option to terminate them by calling by phone or online.<\/p>\n
Last year, the FTC took legal action against technology giant Amazon on a related issue<\/a>.<\/p>\n The lawsuit accused the firm of tricking customers into signing up for Prime subscriptions that renewed automatically and made it difficult for people to cancel.<\/p>\n It also said Amazon’s website designs pushed customers into agreeing to enrol in Prime and have the subscription automatically renewed as they were making purchases.<\/p>\n Amazon has rejected the claims.<\/p>\n