The changes are set to take effect in April 2025.
Companies that don't comply could face civil penalties, according to the Federal Trade Commission.
"Too often, businesses make people jump through endless hoops just to cancel a subscription," FTC Chair Lina Khan said in a statement following the announcement. Businesses will be required to provide important information -- such as when free trials end -- and to obtain consumers' consent before billing and charging them.
"For a lot of services, it takes one or two clicks on your phone to sign up. It should take one or two clicks on your phone to end the service," White House Domestic Policy Advisor Neera Tanden said in August. "Consumers could see the new rule applied to gym memberships or phone and internet companies."
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