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The US FTC has just introduced a new rule that allows subscribers to cancel their subscriptions by clicking on the link.

The US FCC has restored net neutrality earlier this year, a rare example of the US adopting the types of consumer rights protections the EU has consistently rolled out in recent years. The US Federal Trade Commission has now followed suit with its own regulation, which it describes as "a set common-sense changes to the Negative Option Rule."

It's a convoluted way of saying 'it will be easier to unsubscribe now'.

Negative option is a form recurring billing that is bad for consumers. It includes automatic renewals, free trials and hidden fees. The FTC proposed this rule because "problematic negative option practices" have been a persistent source for consumer harm for decades. They saddle shoppers with recurring payments that they never intended to buy or didn't want to continue purchasing.

These days most of us maintain a tangled nest of monthly subscriptions--Spotify, Netflix, Game Pass, and so on and so forth--and it's not always a guarantee that they'll make unsubscribing quick or easy. I paid upfront for a year of unlimited screenings with Regal Cinemas. I live within walking range of a theater, and a couple of movies a month were enough to cover the cost. I was a little annoyed when I realized I had to send an email to a support number to cancel my subscription. There was no cancellation button on the Regal app or website. I was even angrier when the service auto-renewed for me several days earlier, almost as though snagging an extra month's payment before people like myself moved to end their subscriptions was a deliberate plan.

This type of practice would be in violation of a new FTC rule that requires services to "include an easy way for people cancel."

The FTC says, "That means that people must be able find your cancellation method easily and quickly." "It should only be available through the same medium as before (online, by phone, etc.). It shouldn't be too burdensome. People used to sign up. People should not be forced to call a representative in order to cancel, or charged extra to cancel by phone. It also discourages obfuscating information at sign-up like the duration of a trial, hidden fees and so on. "All this information must be clear, conspicuous and available to your customer before they enroll." Certain key information about charges and cancellations must always be displayed at the exact moment the customer accepts the negative option.

Some parts of the new regulations will be implemented in 60 days while others will not be until 180 days. It's hoped that it will make it easier to ditch services (and gyms), which seem designed with the idea that we would keep paying them money forever, if subscribing was just a pain in our asses.

Interesting news

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