FTC wants to make it easier for consumers to cancel free trials and subscriptions | CNN Business

New rules from the US government could soon let Americans more easily cancel free trials and subscriptions they no longer want

           

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The Federal Trade Commission (FTC) has proposed new regulations that could make it easier for consumers in the US to cancel subscriptions and free trials. The proposed regulations would cover both digital and physical subscriptions, including traditional print media, cable TV services, gym memberships, e-commerce, and digital streaming. Under the new rules, companies would have to offer consumers the option to cancel a subscription using the same method used to sign up. Companies will also have to request from the customers who want to cancel their subscription whether they would be open to retention offers before they can try to entice them back with discounts or deals. Furthermore, companies will have to provide detailed information to consumers about the subscription’s terms before they ask for billing details. The new regulations aim to stop companies from manipulating customers into paying for subscriptions they don’t want through deceptive or burdensome tactics. Violators will face fines, and the FTC will seek consumer refunds. The FTC is calling the proposed rule "click to cancel," and it is part of the agency’s efforts to protect consumers from deceptive practices.




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