Here's the press release:
https://www.ftc.gov/news-events/news...-end-recurring
And the fact sheet:
https://www.ftc.gov/system/files/ftc...Oct2024-v2.pdf
Quote:
The Federal Trade Commission today announced a final “click-to-cancel” rule that will require sellers to make it as easy for consumers to cancel their enrollment as it was to sign up. Most of the final rule’s provisions will go into effect 180 days after it is published in the Federal Register.
The Commission’s updated rule will apply to almost all negative option programs in any media. The rule also will prohibit sellers from misrepresenting any material facts while using negative option marketing; require sellers to provide important information before obtaining consumers’ billing information and charging them; and require sellers to get consumers’ informed consent to the negative option features before charging them.
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I saw this coming a mile away, but I'm not surprised it took this long.
I'm not a lawyer, so I'm not sure how this will impact the adult industry, but from a user experience and development perspective, difficult cancellations are a plague. I have convinced all of my ongoing clients to implement some form of a "one click" cancel solution over the past ten years.
Some of my clients were concerned that easy cancellations would negatively impact the business too much, but in practice this was rarely seen. The reduction in chargebacks was big, and so was the willingness of users to return or provide feedback before cancelling. I even think just seeing the cancellation button prevented some people from cancelling immediately upon signing up. No concrete evidence of that, though.
I would like to see better language about what is required, but maybe we'll get an actual framework beyond the fact sheet when the rule is published.