United States of America: Adopted FTC Amendments to Negative Option Rule

On 16 October 2024, the Federal Trade Commission (FTC) finalised the "Click-to-Cancel" rule, which simplifies consumers' cancellation process of subscription and membership. The rule mandates that businesses must make cancellations as straightforward as signing up. Additionally, the rule prohibits sellers from misrepresenting facts in marketing negative option services, failing to disclose material terms before billing, not obtaining express informed consent prior to charges, and not providing a simple mechanism to halt charges immediately. The rules will come into force 60 days following its publishing in the Federal Register.