This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.
Subscribe to the Daily Journal for access to Daily Appellate Reports, Verdicts, Judicial Profiles and more...

Contracts,
Consumer Law

Aug. 28, 2024

What does 'making canceling a subscription as simple as signing up' mean for companies?

The White House and FTC are pushing a 'click to cancel' rule to make unsubscribing easier and to combat 'junk fees.' This targets deceptive subscription practices and aligns with updates to the 1973 Negative Option Rule. Companies may face more legal risks if they don't comply, signaling a shift towards more consumer-friendly regulations

Alejandro Moreno

Partner, Sheppard Mullin

501 W Broadway Ste 1900
San Diego , CA 92101

Phone: (619) 338-6500

Email: amoreno@sheppardmullin.com

Harvard Univ Law School; Cambridge MA

Skylar Stoudt

Associate, Sheppard Mullin

Shutterstock

The White House recently teamed up with the Federal Trade Commission (FTC) to make it easier for customers to cancel unwanted subscriptions and memberships. This new crackdown on subscription services is part of the Biden Administration's effort to impose new rules on businesses promoting transparency and discouraging business practices that may aggravate consumers. Under the FTC's proposed rulemaking, companies would be required to make canceling a subscription as simple as ...

To continue reading, please subscribe.
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!

Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)

Already a subscriber?

Sign up for Daily Journal emails