FTC to Enforce “Click-to-Cancel” Rule with Significant Penalties for Non-Compliance

The Federal Trade Commission’s (FTC) “click-to-cancel” rule is set to be enforced imminently, mandating that companies allow consumers to cancel subscriptions and automatic renewals as easily as they were initiated. The enforcement, which is scheduled to begin on May 14, enables the FTC to levy penalties of $51,744 per violation, with a single transaction potentially incurring multiple violations. This rule was adopted last October and went into effect earlier this year on January 14. In readiness for the new measure, FTC Chair Andrew Ferguson highlighted the agency’s focus on curbing unfair and deceptive auto-renewal practices, which included actions against major firms like Uber and a $17 million settlement with an online cash advance company. For further insights, visit the full report on Law.com.