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ARTICLE · 26 NOVEMBER 2024

How Companies Should Fall In Line With FTC Click-To-Cancel Rule

Lowenstein Sandler LLP
Lowenstein Sandler LLP
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Lowenstein Sandler LLP

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Today's digital world makes it easier than ever for customers to purchase products and services in the form of recurring, automatically renewing subscriptions.

United StatesConsumer Protection
Matthew Savare
Matthew Savare
Diane Moss
Diane Moss
  • Lowenstein attorneys urge businesses to adjust processes
  • Key compliance requirements include consent of customer

Today's digital world makes it easier than ever for customers to purchase products and services in the form of recurring, automatically renewing subscriptions. Signing up is fast and simple, but canceling resembles something out of the "Hotel California" where "you can check out any time you like, but you can never leave."

But it's now harder for companies to fly under the radar and confuse customers by obscuring options to withdraw from products and services. The Federal Trade Commission's final "click-to-cancel" rule attempts to address this issue by imposing new requirements on companies offering subscription-based products and services on an auto-renewal basis.

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