Connect with us

Hi, what are you looking for?

Business

US ‘click to cancel’ rule to ban subscription traps

The US Federal Trade Commission (FTC) has adopted a ‘click to cancel’ rule, which aims to make it easier for people to end subscriptions.

It will force companies to make subscribing and cancelling subscriptions equally straightforward.

Businesses, including retailers and gyms, will also have to get consent from customers before renewing subscriptions or converting free trials into paid memberships.

The new rule is due to come into effect in around six months time.

“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said FTC chair Lina Khan.

“The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”

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

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.

Last year, the FTC took legal action against technology giant Amazon on a related issue.

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.

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.

Amazon has rejected the claims.

You May Also Like

Europe

A major international conference was convened in Banja Luka, the capital of the Republic of Srpska, last Saturday, December 9. Held under the title...

Europe

As the people of Bangladesh observe one more anniversary of their triumph on the battlefield in 1971, it is only proper that we travel...

Europe

A half century and two years ago today, scores of our best men and women were picked up by the goon squads known as...

Europe

On the face of it, he is a perfect opposition politician – all righteous anger and condemnation when you browse through his social networks...