If the FTC has its way, it will soon be easier to terminate your subscription or membership.
Today, the U.S. Federal Trade Commission announced a final “click-through” that would require companies selling subscription-based products to “make it as easy for consumers to cancel their subscription as they signed up.” announced the “cancellation” rule.
The rule, which was first asked for comment last year, applies to all auto-renewing subscriptions, from streaming services to gym memberships to payments for plans like Amazon Prime.
Under this rule, businesses (including those offering free trials that incur charges if you don't cancel in time) cannot force customers to terminate their subscriptions in a manner different from the way they signed up. The rule also requires companies to provide relevant information, such as cancellation instructions, before obtaining and charging customers' billing information.
The rule is a slight change from what the FTC originally proposed, which would have required companies to also send annual reminders on how to cancel subscriptions. If the rule had been in place originally, companies would not have been able to persuade customers not to cancel without their explicit consent, for example by indicating a change in plans.
The FTC says it receives thousands of complaints about dual subscription plans each year, and that number has steadily increased over the past five years. The FTC received approximately 70 complaints per day in 2024, up from 42 complaints per day in 2021.
“Too often, companies make people jump through endless hoops just to cancel a subscription,” FTC Commissioner Lina Khan said in a statement. “The FTC's rules will eradicate these tricks and traps and save Americans time and money. No one should have to pay for services they no longer want.”
Most of the regulations' provisions become effective 180 days after they are published in the Federal Register, the official publication that posts daily regulations and notices from U.S. federal agencies.