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FTC’s ‘Click to Cancel’ Proposal Escalates Legal Peril for Sellers

Loeb Advanced Media & Technology partner Nerissa Coyle McGinn is quoted by Law.com in an article discussing the Federal Trade Commission’s (FTC) proposed changes, which would make it easier for customers to cancel subscriptions and memberships. 

According to Law.com, FTC Chair Lina Khan said that businesses employing subscription tricks or “negative options,” where goods or services are automatically sent to purchasers unless they disclose that they do not want them, would be subject to harsh penalties. In a statement to the publication, Nerissa expressed that sellers should have an easy online cancellation method. “Businesses many times will require consumers to call a number to cancel a subscription. That will not work anymore. Businesses will have to provide an online cancellation method. Then, they will have to make sure that the online cancellation method is easy,” Nerissa added.

To read the full article, please visit Law.com’s website (subscription required).