Get ready to save money -- the FTC makes canceling subscriptions easier
Canceling services you no longer want or need could help you save money.
Businesses make people jump through endless hoops just to cancel a subscription. The average consumer spends about $91 on subscriptions each month. Complaints about the difficulty of dropping subscriptions have soared in recent years. The Federal Trade Commission (FTC) estimates it receives nearly 70 a day on average.
The FTC will now require companies to make canceling subscriptions, memberships, automatic renewals, and other recurring payments as easy as signing up for one. It’s called click to cancel and goes into effect April 2025. This rule reaches consumers and businesses in all sorts of industries – from gym memberships to e-commerce and delivery app subscriptions, internet services, cable, cell phones, streaming services, gift box services, and even spa memberships.
What exactly does this mean?
If you sign up for a subscription online, you'll be able to cancel with just a click. No more having to call an automated system or sending an email to request cancellation.
If you signed up in person, you'll have the option to cancel online or over the phone.
The new rule also requires companies to clearly explain the terms before you sign up, so you don't feel tricked or trapped into subscriptions. Businesses must also get consent for subscriptions, auto-renewals and free trials that convert to paid memberships .The FTC previously sued Amazon, accusing them of making it too difficult to cancel Prime memberships. Most parts of the rule will take effect 180 days after it's officially published, but the exact date isn't known yet.