Compliance with Click-to-cancel Rule Effective Today

The FTC’s “click-to-cancel” rule makes it easier for consumers to end subscriptions and memberships. Businesses that use “negative option marketing” should adjust their business practices to avoid noncompliance with the new rule if they haven’t already done so. A “negative option marketing” broadly refers to a category of commercial transactions in which sellers interpret a customer’s failure to take an affirmative action, either to reject an offer or cancel an agreement, as assent to be charged for goods or services. Be sure there’s a simple way for consumers to cancel. Violators may be liable for civil penalties. #IdeaoftheDay