US Federal Trade Commission imposes ‘click and cancel’ rules

The US Federal Trade Commission (FTC) has introduced a new “click to cancel” rule to simplify the process of ending subscriptions.

Companies must now make signing up and cancelling subscriptions equally easy.

They must also obtain customer consent before renewing memberships or converting free trials into paid plans.

The rule, set to take effect in six months, bans businesses from requiring customers to navigate chatbots or agents to cancel subscriptions made online.

The FTC previously sued Amazon.com Inc (NASDAQ:AMZN) and Adobe Inc (NASDAQ:ADBE) over complicated cancellation processes and undisclosed fees.

This rule aims to prevent companies from trapping customers in unwanted services, echoing similar consumer protection laws introduced in the UK in 2024 to tackle “subscription traps.”