FTC adopts 'click-to-cancel' rule, aiming to make it easier to cancel memberships

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FTC adopts 'click-to-cancel' rule, aiming to make it easier to cancel memberships
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The changes are set to take effect in April 2025.

The Federal Trade Commission finalized a rule Wednesday that seeks to make it easier for American households to cancel their subscriptions and memberships.

"The FTC's rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want," Khan said.Under the so-called "click-to-cancel" rule, if customers decide to enroll in a subscription online or through an app in one step -- they should be able to cancel that way, too.

The Biden administration announced in August it was working to adopt the rule as part of a broader effort to cut down the time and money Americans spend wrangling with companies over customer service.

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