California Attorney General Rob Bonta announced support June 26 for proposed Federal Trade Commission (FTC) changes that will make canceling subscriptions, both digital and physical, as easy as signing up for them, according to his office.
The so-called Negative Option Rule is a marketing method for companies to enroll consumers in services with recurring charges, like for subscriptions, and memberships. Consumers’ silence or failure to take action regarding the charges are interpreted by companies as renewals.
“If consumers want to cancel a subscription, they should not have to go on a fishing expedition,” Mr. Bonta said in a press release. “Just as businesses make it easy to sign up for a subscription, they need to respect customers who later want to end that subscription.”
Mr. Bonta’s action is part of a coalition of 26 attorneys general supporting the change. Such would provide more protection to consumers, offering easy and immediate cancellation options, and reminders of upcoming charges, according to the press release.
The attorneys general also urged the FTC to enforce a requirement for businesses to seek additional consent from consumers prior to charging them upon the completion of the free trial. They also asked the commission to broaden the ways that a consumer can cancel a…
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