The Federal Trade Commission extended the deadline for its «click to cancel» rule a second time to give servicers more time to come into compliance.
If you’ve ever had trouble trying to cancel a subscription, the FTC’s Negative Option Rule is intended to make it just as easy to cancel a subscription as it is to sign up for one. The rule went into effect in January, but the FTC pushed back enforcement on some provisions until May 14. Now the FTC is giving businesses until July 14, saying in a statement that the extension was necessary because the «original deferral period insufficiently accounted for the complexity of compliance.»
This news comes on the heels of CNET’s latest survey, that shows Americans are paying more than $1,000 for subscriptions each year, and potentially wasting $200 a year on unwanted apps.
Here’s how this delay could impact you and how to cancel subscriptions you no longer use in the meantime.
What the ‘click to cancel’ rule means for you
With the new rule, sellers must be more transparent and can’t misrepresent material or mislead customers when marketing a service.
Previously, servicers could make it tricky to end a subscription by hiding the cancel button, including misleading language and forcing you to click through additional offers instead of making it a straightforward process to cancel.
Now, the rule requires businesses to conspicuously and clearly disclose terms and get your informed consent before charging for a subscription or membership. There must also be a simple mechanism to cancel the negative option feature and immediately halt charges.
Retailers that violate the rule will penalized with civil penalties and redress, according to the FTC. However, the FTC closed its statement with the caveat, «Of course, if that enforcement experience exposes problems with the rule, the Commission is open to amending the rule to address any such problems.»
How to cancel subscriptions while this rule is delayed
Some companies have already put the click to cancel rule in effect. However, if you don’t have to wait to see if this rule is implemented for one of your servicers to get rid of unwanted subscriptions. CNET Money editor, Kelly Ernst, used budgeting app Rocket Money to help her get rid of monthly services she know longer wanted, saving her $400 in 15 minutes.
You don’t have to use a budgeting app to eliminate pesky subscription bills. Check your bank account and credit card statements from the past month and look for any recurring charges from services you no longer use. Then log into your service account and cancel or pause the service. If you’re struggling to find an option to cancel, call the service’s customer service phone number to end your account.
