Attorney General Anthony G. Brown has issued a consumer alert regarding a new Federal Trade Commission (FTC) rule set to take effect on Sunday, April 13. The rule, known as the “Click-to-Cancel” rule, mandates that companies provide a straightforward online method for consumers to cancel recurring subscriptions and memberships.
This initiative arises from the challenges consumers face in managing online subscriptions. Many find it difficult to navigate the cancellation processes, which can be confusing and cumbersome. In response to these issues, the FTC, with support from Attorney General Brown in June 2023, revised an existing rule to increase consumer protections against deceptive auto-renewal practices. This revision led to the development of the Click-to-Cancel rule.
Key features of the new rule include:
- Easy Cancellation: Companies must enable consumers to cancel services easily online, eliminating the need for phone calls or complex procedures.
- Clear Disclosure of Terms: Before charging customers, companies are required to disclose all terms clearly, preventing hidden fees and misleading offers.
- Transparency in Automatic Renewals: Companies must clearly communicate the end of free trials and provide reminders before initiating charges for renewals.
The rule aims to safeguard consumers from unwanted charges and simplify the cancellation of subscriptions and memberships, ultimately saving both time and money.
For more details on the rule, consumers can visit the FTC’s dedicated page at FTC Click-to-Cancel Rule Information.
Consumers interested in receiving further alerts can subscribe to updates at Maryland Attorney General’s Office Subscription Page.
