In 2023, the Federal Trade Commission proposed a new regulation that would make it significantly easier for people to end their streaming subscriptions, gym memberships and other programs that can sometimes be harder than expected to wind down. Known as “click to cancel,” the proposed measure would — as the nickname suggests — simplify the process for canceling a subscription. The FTC was set to begin enforcing it this month — but now, that enforcement date has been pushed back.
Techcrunch’s Anthony Ha reports that the FTC opted to extend the period before they would require compliance with the regulation — formally known as the Negative Option Rule — from May 14 of this year to July 14.
This doesn’t mean that the Negative Option Rule isn’t in place now. It is; it has been since January 19 of this year. In a statement released on May 9, the FTC explained its logic in delaying enforcement of the rule in question. “Having conducted a fresh assessment of the burdens that forcing compliance by this date would impose, the Commission has determined that the original deferral period insufficiently accounted for the complexity of compliance,” they explained.
FTC Sues Uber Over Alleged “Deceptive” Subscription Practices
The agency believes the ride-hailing service is violating two lawsA line in the FTC’s recent statement also suggests that its enforcement date could lead to further changes in the Negative Option Rule. “[I]f that enforcement experience exposes problems with the Rule, the Commission is open to amending the Rule to address any such problems,” the FTC wrote. What that might mean for the subscription and cancellation process two months from now remains to be seen.
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