Canceling Subscriptions Just Changed: What to Know [Video]

Canceling subscriptions just got easier after the Federal Trade Commission (FTC) updated its rules for companies that offer subscription services, from gyms and food delivery companies to streaming services.

The new “click-to-cancel” rule will require companies to make it as easy to end subscriptions as it is to sign up for them. The rule is set to go into effect 180 days after being published in the Federal Register.

“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said FTC Chair Lina Khan in a statement Wednesday. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”

Specifically, sellers are prohibited from misrepresenting any information when customers attempt to cancel their subscriptions. Sellers must also provide important information before obtaining billing information and charging the customer. There also must be informed consent before charges go …