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Barbara Weltman

Big Ideas for Small Business, Inc.

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New Click-to-Cancel Rule

November 4, 2024 / By Barbara Weltman

Last month, the FTC finalized the “click-to-cancel” rule to make 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. 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. The rule takes effect on April 14, 2025. #IdeaoftheDay

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Small business ideas, business tax news and small business consulting from Barbara Weltman to provide business owners with the information they need to succeed. Visit our small business blog, Idea of The Day®, small business books and articles on small business taxes, small business finance and small business legal advice.

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