Attorney General Michelle Henry announced the Federal Trade Commission amended the Negative Option Rule, or “Click to Cancel” rule, incorporating many of the changes the Office of Attorney General sought for Pennsylvanians trapped in undesirable subscriptions.
Negative options are marketing methods used by companies to enroll consumers into subscription plans and programs, often without the consumer’s full understanding or consent.
The Federal Trade Commission unveiled the new rule Wednesday, making it easier for consumers to cancel their subscriptions or other reoccurring charges.
“I am pleased to see that our federal partners followed many of our recommendations, which will protect consumers in the Commonwealth and across the country,” Attorney General Henry said. “Canceling a subscription should be as easy as signing up, and, for far too long, deceptive sellers have subjected consumers to too many steps to opt out.”
The new rule will take full effect 180 days after publication in the Federal Register.
The FTC’s amended Negative Option Rule requires that:
- Important information must be truthful, clear, and easy to find.
- People have to know what they are agreeing to before they sign up.
- Sellers have to be able to show that people knew what they agreed to before they signed up.
- There must be a way to cancel that is as quick and easy as it was to sign up.
- Sign up online? Click to cancel
- Signed up in person? Cancel online or over the phone.
- Violators can be liable for redress and civil penalties.