The Federal Trade Commission (FTC) has approved a new "Click to Cancel" rule making subscription cancellations significantly easier for U.S. consumers. The rule requires businesses to make canceling subscriptions as simple as signing up for them.

Key Requirements of the New Rule:

• Businesses must provide a straightforward cancellation mechanism that's easy to find
• Customer service calls cannot be mandatory for cancellation unless they were required for initial signup
• Companies must clearly display purchase information and terms upfront
• Sellers must immediately stop recurring charges upon cancellation request

The rule modifies the FTC's existing negative option regulation from 1973, updating it for the digital age. It will take effect 180 days after Federal Register publication and applies to various subscription services, including music streaming platforms.

Important Exceptions and Details:

• Certain businesses may qualify for exemptions
• Penalties will be imposed for violations
• The rule passed with a 3-2 commission vote
• Companies must allow cancellation through the same medium used for signup

The regulation aims to protect consumers from deceptive subscription practices and ensure transparency in automatic renewal services. While music streaming services generally maintain straightforward cancellation processes, this rule will standardize practices across all subscription-based industries.

Note: Commissioner Melissa Holyoak opposed the rule, calling it "overbroad" and "likely unlawful," while Commissioner Rebecca Kelly Slaughter supported it but wanted stronger provisions for annual subscription reminders.

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