The Federal Trade Commission (FTC) has just introduced a new “Click-to-Cancel” rule that makes it easier for consumers to cancel their subscriptions. This new regulation focuses on simplifying the process, ensuring that canceling a subscription is just as easy as signing up for one. The rule comes after the FTC received thousands of complaints from consumers frustrated by the difficulties of canceling recurring payments.
What Does This Mean for eCommerce Sellers?
For eCommerce sellers offering subscriptions or recurring memberships, this rule will directly impact how they manage cancellations. Sellers will no longer be able to use tactics like requiring phone calls or complicated steps to cancel unless those same steps were required when the customer first signed up. This could mean fewer “locked-in” customers but also an increase in trust from consumers, knowing that they can easily opt out.
If your business offers subscription services, especially for eCommerce sellers with recurring orders or memberships, it’s time to ensure that your cancelation processes meet this new standard. Simplicity and transparency are key.
