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FTC updates 'Click-to-Cancel' rule with input from Pennsylvania Attorney General

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Wednesday, November 27, 2024

FTC updates 'Click-to-Cancel' rule with input from Pennsylvania Attorney General

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Attorney General Michelle Henry | Ballotpedia

Attorney General Michelle Henry announced that the Federal Trade Commission (FTC) has amended the Negative Option Rule, also known as the "Click to Cancel" rule. This amendment incorporates several changes proposed by Henry's office to aid Pennsylvanians facing challenges with unwanted subscriptions.

Negative options are marketing strategies that companies use to enroll consumers into subscription plans, often without clear consent or understanding from the consumer. The FTC introduced this new rule on Wednesday, aiming to simplify the process for consumers wishing to cancel their subscriptions or recurring charges.

"I am pleased to see that our federal partners followed many of our recommendations, which will protect consumers in the Commonwealth and across the country," Attorney General Henry stated. "Canceling a subscription should be as easy as signing up, and, for far too long, deceptive sellers have subjected consumers to too many steps to opt out."

The revised rule is set to become fully effective 180 days after its publication in the Federal Register.

For further details, the Office of Attorney General's original press release and joint letter to the FTC are available online.

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