FTC Makes it Easier for NJ Consumers to Cancel Subscriptions

🔴  New Rules Will Protect Consumers from Auto-Renewal Surprises

🔴  Canceling Memberships & Subscriptions Will Be As Easy As Signing Up 

🔴  Rules Go Into Effect in 180 Days 

We've all seen those tempting online ads offering ridiculously low prices for subscriptions—especially from newspapers and magazines.

You know the ones: “Get six months for just $1!” But there’s always a catch.

Once that sweet deal is over, the subscription quietly renews at the “regular rate,” which is often much higher.

Just this morning, I saw one of these offers—one month for only ten cents!

But in tiny print, it said, “All savings are based on the regular rate.”

Of course, if you want to find out what that rate is, you have to click through a maze of fine print. It’s enough to make your head spin!

The problem is, that many people sign up, then forget to cancel.

When the trial period ends, they’re hit with that auto-renewal at the full price, and they don’t even realize it until they check their bank statement.

Companies count on this—it’s a big moneymaker for them.

And don’t get me started on gym memberships!

Signing up is a breeze, but canceling?

You end up burning more calories trying to quit than you ever did on the treadmill.

Well, that’s all about to change.

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The FTC just introduced a new rule called “Click to Cancel,” which means that canceling a subscription should be as easy as signing up for one.

No more jumping through hoops. Businesses will also need your consent before they can auto-renew a subscription.

The FTC receives thousands of complaints every year about sneaky auto-renewals, so this is a big win for consumers.

While some businesses claim it will lead to higher costs, it makes you wonder how many people would sign up in the first place if not for those initial deals.

These new rules go into effect 180 days after being published in the Federal Register.

Source:  Fox5