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Consumer Law,
Contracts

Aug. 28, 2024

What does 'making canceling a subscription as simple as signing up' mean for companies?

The White House and FTC are pushing a 'click to cancel' rule to make unsubscribing easier and to combat 'junk fees.' This targets deceptive subscription practices and aligns with updates to the 1973 Negative Option Rule. Companies may face more legal risks if they don't comply, signaling a shift towards more consumer-friendly regulations

Alejandro Moreno

Partner, Sheppard Mullin

501 W Broadway Ste 1900
San Diego , CA 92101

Phone: (619) 338-6500

Email: amoreno@sheppardmullin.com

Harvard Univ Law School; Cambridge MA

Skylar Stoudt

Associate, Sheppard Mullin

Shutterstock

The White House recently teamed up with the Federal Trade Commission (FTC) to make it easier for customers to cancel unwanted subscriptions and memberships. This new crackdown on subscription services is part of the Biden Administration's effort to impose new rules on businesses promoting transparency and discouraging business practices that may aggravate consumers. Under the FTC's proposed rulemaking, companies would be required to make canceling a subscription as simple as ...

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