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The Federal Trade Commission (FTC) has postponed the enforcement of its “click-to-cancel” rule until July 14th, granting companies additional time to streamline their subscription cancellation processes.
Originally slated to take effect on May 14th, this rule mandates that canceling subscriptions should be as straightforward as signing up. This initiative, officially known as the Negative Option Rule, aims to eliminate hurdles and ensure consumers can easily terminate online subscriptions.
According to the FTC, the delay stems from a reassessment of the compliance burden on businesses. The commission voted 3-0 to postpone enforcement, although two commissioner seats remain vacant.
The FTC has stated that it expects full compliance by the new July 14th deadline, but it is also open to amending the rule if unforeseen issues arise during enforcement.
This rule means companies that allow you to sign up for a service online must also allow you to cancel online. The FTC’s move provides a brief reprieve for businesses while underscoring the agency’s commitment to consumer protection regarding subscription services.
Source: The Verge