Click-to-cancel: Difference between revisions

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*to fail to provide a simple mechanism to cancel the negative option feature and immediately halt charges
*to fail to provide a simple mechanism to cancel the negative option feature and immediately halt charges


A "negative-option feature" is defined by the FTC as "a provision in an offer or agreement to sell or provide any goods or services 'under which the customer’s silence or failure to take an affirmative action to reject goods or services or to cancel the agreement is interpreted by the seller as acceptance of the offer'".<ref name=":0" /> In other words, it is a feature of a service, where once a subscription is initiated, the customer will be continue to be billed until they actively cancel the subscription.
A "negative-option feature" is defined by the FTC as "a provision in an offer or agreement to sell or provide any goods or services 'under which the customer’s silence or failure to take an affirmative action to reject goods or services or to cancel the agreement is interpreted by the seller as acceptance of the offer'".<ref name=":0" /> In other words, it is a feature of a service, where once a subscription is initiated, the customer will continue to be billed until they actively cancel the subscription.


The click-to-cancel rule is not limited to electronic services, as the name might suggest. It includes, but is not limited to "Interactive Electronic Media, telephone, print, and in-person transactions."<ref>https://www.federalregister.gov/documents/2024/11/15/2024-25534/negative-option-rule#sectno-citation-425.1</ref> The cancellation mechanism must be "at least as simple as consent".<ref>https://www.federalregister.gov/d/2024-25534/p-1164</ref> The customer may not be required to interact with a representative, whether a real human or a chat bot, if the customer was not required to do so when they signed up for the service.<ref>https://www.federalregister.gov/d/2024-25534/p-1166</ref> For services which were signed up for in-person, the seller must allow cancellation online or over the phone.<ref>https://www.federalregister.gov/d/2024-25534/p-1168</ref>  
The click-to-cancel rule is not limited to electronic services, as the name might suggest. It includes, but is not limited to "Interactive Electronic Media, telephone, print, and in-person transactions."<ref>https://www.federalregister.gov/documents/2024/11/15/2024-25534/negative-option-rule#sectno-citation-425.1</ref> The cancellation mechanism must be "at least as simple as consent".<ref>https://www.federalregister.gov/d/2024-25534/p-1164</ref> The customer may not be required to interact with a representative, whether a real human or a chat bot, if the customer was not required to do so when they signed up for the service.<ref>https://www.federalregister.gov/d/2024-25534/p-1166</ref> For services which were signed up for in-person, the seller must allow cancellation online or over the phone.<ref>https://www.federalregister.gov/d/2024-25534/p-1168</ref>