FTC Issues ‘Click-to-Cancel’ Rule on Recurring Subscriptions (2)

The Federal Trade Commission finalized a rule Wednesday requiring companies make recurring subscriptions as easy to cancel as they are to sign up for.

The rule, which will go into effect later this year, obliges companies that allow online sign-ups to also offer online cancellation options in just a few steps, rather than forcing customers to quit in person or over the phone. Companies would also have to send reminders before automatic renewals are billed.

“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said Chair Lina Khan. “The FTC’s rule will end these ...