The Federal Trade Commission (FTC) has approved a new "Click to Cancel" rule making subscription cancellations as straightforward as sign-ups, with three out of five commissioners voting in favor.

Key Changes:

• Sellers must display purchase information and terms clearly upfront
• Cancellation mechanisms must be easily accessible through electronic mediums
• Customer service calls cannot be required for cancellation (unless part of initial signup)
• Businesses must immediately stop recurring charges upon cancellation request
• Companies must allow consumers to avoid increased charges

The rule modifies the 1973 negative option rule, updating it for modern digital subscriptions and streaming services. It will take effect 180 days after Federal Register publication.

Important Notes:

• Businesses may qualify for exemptions
• Penalties apply for violations
• The rule considers failure to provide simple cancellation mechanisms an "unfair or deceptive act"

Dissenting commissioner Melissa Holyoak argued the rule is "overbroad" and "likely unlawful," while supporting commissioner Rebecca Kelly Slaughter wanted additional provisions for annual subscription reminders.

The regulation particularly impacts subscription-based services, including music streaming platforms, though most major streaming services already offer straightforward cancellation processes.

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