FTC to Host Virtual Hearing on proposed "Click to Cancel" rulemaking

The Federal Trade Commission (FTC) announced today that it will hold a virtual informal hearing on January 16, 2024, to discuss the proposed amendments to the Negative Option Rule. These amendments include a "click to cancel" provision that would require businesses to make it as easy for consumers to cancel their subscriptions as it was to sign up for them.

The hearing will be open to the public and will be viewable on the FTC's website. Six nongovernmental organizations have been selected to provide oral statements at the hearing. These organizations include the International Franchise Association, TechFreedom, the Performance Driven Marketing Institute, NCTA – The Internet & Television Association, FrontDoor, and the Interactive Advertising Bureau.

The FTC proposed the "click to cancel" rule in March 2023 in an effort to protect consumers from unfair and deceptive practices. The rule would also prohibit businesses from charging cancellation fees or requiring consumers to return products in order to cancel their subscriptions.

The FTC is still accepting comments on the proposed rule. The comment period will close on January 6, 2024.


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