The Federal Trade Commission (FTC) has announced a new rule to simplify the cancellation process for subscriptions and memberships that consumers no longer want. The “click-to-cancel” rule, finalized on Tuesday, requires businesses to make it just as easy for customers to cancel subscriptions as it was to sign up for them.
FTC Chair Lina Khan emphasized the importance of this rule, explaining that consumers must be able to cancel on the same platform and with the same ease they used to enroll. “If you signed up online, you should be able to cancel online in the same number of steps,” she said in an interview.
The rule comes as part of the FTC’s broader “Time Is Money” initiative, aimed at addressing consumer frustrations. Khan noted that complaints about difficult-to-cancel subscriptions have surged, with the FTC now receiving about 70 complaints per day on the issue—up dramatically from previous years. When the rule was first proposed last year, the agency received over 16,000 comments from consumers voicing their concerns.
Khan explained that businesses often make signing up for services incredibly easy but create “doom loop” cancellation systems—such as unhelpful phone menus or repeated transfers between agents—that trap consumers into paying for services they no longer want. “All people want is some fairness and honesty, and that’s what this rule will do,” Khan said.
Not everyone supports the rule. The U.S. Chamber of Commerce, the nation’s largest business lobbying group, criticized the FTC’s move, saying it would “micromanage business practices.” In response, Khan argued that businesses shouldn’t rely on tricking customers into staying subscribed. “At the end of the day, if a business is dependent on tricking or trapping people into subscriptions, that’s not a good business model,” she said.
The new rule comes as the FTC ramps up legal action against companies accused of using deceptive subscription practices. The agency is currently suing Amazon over its Prime service, alleging that the tech giant makes it difficult for customers to cancel their subscriptions. Amazon has denied any wrongdoing, and the case is scheduled to go to trial next summer.
The challenges of canceling memberships aren’t limited to tech companies. NBC News reports that Haley Nelson, a Planet Fitness member from Minnesota, described her struggle to cancel her gym membership, which required her to do so in person despite her busy schedule. Nelson ended up paying for months of unused membership fees before finding time to cancel. “If they made it as easy to get out of a membership as it is to join, it would be very helpful,” she said, calling the FTC’s new rule a “positive step in the right direction.”
Planet Fitness responded by saying that their standard cancellation policy requires members to cancel either in person or by mail, though some locations and membership types offer online cancellation options. The company noted that 30% of its new memberships come from previous members.
