Van Hollen Applauds FTC Approval of “Click to Cancel” Rule to Ease Cancellation of Recurring Subscriptions

Today, U.S. Senator Chris Van Hollen (D-Md.) welcomed the Federal Trade Commission's (FTC) approval of the "Click to Cancel" final rule, which requires companies to seek informed consent from consumers before beginning a subscription service and makes it easier to end a membership or recurring-payment program. The rule mirrors key provisions of the Senator and Congresswoman Yvette Clarke's (D-N.Y.) Consumer OPT-IN Act, including those requiring informed consent and easing the ability to cancel subscriptions, as well as enforcement authority allowing the FTC to return money to consumers impacted by a company that has violated the rule. Last year, the Senator wrote to the FTC in support of the proposed Click to Cancel rule during the review process.

"Too many Americans know the frustration of being blindsided by a charge for a subscription they never meant to sign up for - and jumping through endless hurdles to try to cancel. Using key components of our Consumer OPT-IN Act, the Biden-Harris Administration's Click to Cancel rule is a critical tool to ensure an easy way out of subscription traps and hold companies accountable for deceptive tactics. We will build on this important progress by working to pass the other provisions of our legislation to further protect Americans from unwanted charges and corporate greed," said Senator Van Hollen.

The FTC's Click-to-Cancel final rule ensures that consumers aren't misled when they're signing up for subscriptions in the first place and requires companies to seek their informed consent before making recurring charges. The rule will require businesses to disclose key terms - such as when trial periods end, the deadline to cancel, and the frequency of charges - before collecting any billing information from people. The rule will allow the FTC to return money to impacted consumers and levy stiff penalties against companies that violate it.

The Click to Cancel rule is expected to take effect in the spring of 2025. More information on the rule can be found here.