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FTC Unveils Long Overdue Rule to Ease Subscription Cancellations

  • The Federal Trade Commission (FTC) has introduced an updated version of its Negative Option Rule to simplify subscription cancellations.
  • The new rule requires businesses to make cancellation processes as easy as signing up, eliminating barriers for consumers.
  • Subscription-based companies must provide clear terms, especially regarding automatic renewals, and obtain explicit consent from customers.
  • The rule also focuses on clearer communication for free trials and prohibits misleading marketing practices.

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