Maryland AG issues alert on new rule simplifying online subscription cancellations

Maryland Attorney General Anthony G. Brown issued a consumer alert regarding a new Federal Trade Commission (FTC) rule set to take effect on Sunday.

The “Click-to-Cancel” rule mandates that companies provide a straightforward online method for consumers to cancel recurring subscriptions and memberships with just a few clicks.

The rule ensures that companies must offer an easy online cancellation process, clearly disclose subscription terms before charging, and provide transparency regarding automatic renewals. This initiative aims to protect consumers from unwanted charges and simplify the cancellation process, ultimately saving time and money.

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“The digital world we live in makes it easier than ever for businesses to sign up consumers for their products and services,” the Attorney General’s Office wrote in a press release. “Unfortunately, it is not always as easy to monitor or cancel these purchases online, with many of these businesses making it difficult or confusing for their customers to keep track of their memberships or to cancel them.”

In June 2023, Brown supported changes to an existing FTC rule aimed at better protecting consumers from deceptive auto-renewal programs and plans. These changes led to the creation of the new Click-to-Cancel rule.