Consumer Alert: Understanding the FTC’s “Click-to-Cancel” Rule Going into Effect This Weekend

Consumer Alert: Understanding the FTC’s “Click-to-Cancel” Rule Going into Effect This Weekend

April 12th, 2025 by WCBC Radio

Attorney General Anthony G. Brown today issued a consumer alert on a Federal Trade Commission (FTC) rule, which will go into effect on Sunday, April 13, that will make it easier for consumers to go online and cancel recurring subscriptions and memberships. The new “Click-to-Cancel” rule requires companies to provide a simple, online way for consumers to cancel subscriptions and memberships with just a few clicks, rather than forcing them to jump through hoops.

The digital world we live in makes it easier than ever for businesses to sign up consumers for their products and services. Unfortunately, it is not always as easy to monitor or cancel these purchases online, with many of these businesses making it difficult or confusing for their customers to keep track of their memberships or to cancel them.

In June 2023, Attorney General Anthony Brown supported changes to an existing FTC rule that would better protect consumers from deceptive auto-renewal programs and plans. These changes resulted in the creation of the new Click-to-Cancel rule.

Here’s what the rule means for you:

1. Easy Cancellation. If you want to cancel a service, companies must offer an easy way to do it online, without making you call or navigate confusing steps.

2. No Sneaky Charges. Companies must clearly tell you what you’re signing up for before they charge you. No hidden fees or misleading offers.

3. Automatic Renewal Transparency. If you sign up for a trial or a subscription, companies must make it clear when your free trial ends, and they can’t keep charging you without a reminder.

This new rule helps protect you from unwanted charges and makes canceling subscriptions and memberships much simpler, saving your time and your money. More information about the rule is available from the FTC: https://www.ftc.gov/system/files/ftc_gov/pdf/NegOptions-1page-Oct2024-v2.pdf.

This alert was issued to all consumers who have subscribed to receive consumer information from our office. Consumers can subscribe to this list here: https://public.govdelivery.com/accounts/MDAG/subscriber/new.