FTC Delays Enforcement of ‘Click to Cancel’ Rule

The Federal Trade Commission (FTC) has postponed the enforcement of its ‘Click to Cancel’ rule, which was initially set to take effect on May 14. The rule requires that canceling subscriptions should be as straightforward as signing up for them. The FTC has now announced that it will not enforce the rule until July 14, as reported by TechCrunch. Known as the Negative Option Rule, it prohibits companies from making the cancellation process more complicated than the sign-up process. The FTC has stated that the delay is due to a reassessment of the compliance burden. The decision was made with a 3-0 vote, though two commissioners were absent due to being illegally dismissed by Donald Trump in March. The FTC has indicated that it remains open to amending the rule if enforcement reveals any issues.

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