The United States Federal Trade Commission (FTC) has adopted a “click to cancel” rule, which aims to make it easier to cancel subscriptions.
This will force companies to make signing up and canceling just as easy.
Businesses, including retailers and gyms, will also need to obtain consent from customers before renewing their subscriptions or converting free trials to paid subscriptions.
The new rule is expected to take effect in about six months.
“Too often, companies force people to jump through endless hoops just to cancel a subscription,” said FTC Chair Lina Khan.
“The FTC rule will put an end to these tricks and traps, saving Americans time and money.” No one should have to pay for a service they no longer want.
Under the new rule, companies will be prohibited from forcing customers to go through a chatbot or agent to cancel subscriptions originally purchased using an app or website.
For memberships that customers signed up for in person, companies will need to offer the option to cancel them by calling by phone or online.
Last year, the FTC filed a lawsuit against tech giant Amazon over a related issue.
The lawsuit accused the company of tricking customers into signing up for Prime subscriptions that automatically renewed and made it difficult to cancel.
He also said Amazon's website design pushed customers to agree to sign up for Prime and automatically renew their subscription as they shop.
Amazon has denied these allegations.
