The US Federal Trade Commission has approved a rule designed to standardize cancellation processes across streaming services and other subscription-based businesses. Known as the “click-to-cancel” rule, it aims to ensure customers can unsubscribe with the same ease as signing up in the first place.
Taking effect in roughly six months, the regulation targets what the FTC sees as ambiguous and convoluted cancellation paths employed by some companies. Chair Lina Khan criticized tactics that force users through “endless hoops” to terminate recurring payments. The updated standards are meant to untangle confusing procedures and save customers both time and money.
Notably, the rule applies directly to giants in the music streaming world like Spotify, Apple Music, and Amazon Music. With hundreds of millions using their services nationwide and abroad, these platforms are under new requirements to streamline cancellations to a level comparable to sign-ups. The changes could reshape consumer experiences and business models across the subscription economy.
The FTC proposal drew broad input, receiving over 16,000 public comments. While some industry voices questioned elements, the approved rule maintains core aims around transparency, consent, and parity between enrollment and unenrollment. This includes banning misrepresentation and demanding clear disclosures upfront.
Recent data informed the need for the update. Subscription complaints received by the FTC have sharply risen, jumping from 42 to nearly 70 daily reports in just the past three years. Evolving consumer habits and the growing long tail of subscription services likely contributed to this escalation.
Notably, the rule mirrors actions in South Korea targeting major overseas platforms like Spotify. Regulators there allege some operators fail to support mid-billing cycle cancellations or properly notify users of refund rights.
