The Federal Trade Commission voted to delay the implementation of negative option rules on Friday. Companies are known as the “click-Cancel” rules so that they can cancel the subscription as much as they join.
This rule, which was first proposed in 2023, aims to find out that the business that sells physical and digital subscriptions (everything from streaming service to gym membership) has to be canceled through a process that is much more complicated or time -consuming through a simple entry flow.
According to the negative option rules, the business cannot be forced to cancel the subscription through a different method than the method used by the customer. Therefore, if you join a few clicks on the company website, you should be able to cancel it on the website. The company also needs to provide relevant information on cancellation before collecting customer payment information.
According to the FTC, the rules were enforced on January 19, but the execution of some provisions was delayed by May 14. The FTC now delays the execution by 60 days by July 14th.
In the statement, the FTC said, “After a new evaluation of the burden of compulsory compliance until this date, the committee decided that the acting period was insufficiently explained of the complexity of compliance.
The committee voted 3-0 to delay the implementation. The FTC traditionally traditionally fired two Democrats in March with five commissioners (three people in the presidential party, two opponents) in March. The members later sued Trump and insisted that the president violated the Supreme Court’s precedent that the president could not dismiss the FTC commissioner without the cause.
Despite the delay, the FTC said on July 14 that the regulatory agency must comply with it.
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The FTC said, “Of course, if the execution experience occurs in the rules, the Commission can revise the rules to solve such problems.