FTC Chair Ferguson Must Side with Consumers Over Exploitative Companies That Trap Customers in Unwanted Subscriptions
Washington, DC — On Tuesday, a federal appeals court vacated the Federal Trade Commission’s “click to cancel” rule, which was set to take effect next week. The rule, which was a priority for former FTC Chair Lina Khan, requires businesses like gyms and retailers to make it as easy to cancel a subscription as it was to sign up. Demand Progress Education Fund has been a stalwart supporter of the click to cancel rule and organized a coalition letter in support of it during the FTC’s careful and deliberate rulemaking.
The following is a statement from Emily Peterson-Cassin, director of corporate power at Demand Progress Education Fund:
“FTC Chair Andrew Ferguson now has a choice: direct the agency to defend the rule or do nothing and let Planet Fitness and Amazon trap Americans in obnoxious subscriptions or memberships they don’t want. Stopping companies from making consumers navigate a maze of phone calls, deadlines and even in-person visits in order to cancel a subscription that took only a single online click to sign up for should be a no-brainer. The ball is now in the FTC’s court. What Andrew Ferguson does next will tell us whether he sides with American consumers or with predatory corporations.