The Federal Trade Commission (FTC) has postponed the enforcement of its new ‘click-to-cancel’ rule, which is designed to simplify the process of canceling subscriptions. This rule, part of the updated Negative Option Rule, mandates that companies clearly disclose subscription terms and ensure that canceling a subscription is no more difficult than signing up. Following backlash from telecom companies who filed a lawsuit, the FTC has moved the enforcement date back by 60 days, from May 14 to July 14.
Certain provisions of the updated rule came into effect on January 19, though enforcement of specific parts was originally set for May 14. The FTC reassessed the challenges businesses might face in meeting the deadline and concluded that the complexity of compliance had not been adequately considered. By July 14, all regulated entities must fully comply with the rule as the FTC will begin enforcement actions. However, the FTC remains open to revising the rule if enforcement reveals any issues.
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