Companies have less than a week to ensure they’re in compliance with the Federal Trade Commission’s new “click-to-cancel” rule, which is supposed to ensure consumers can cancel subscriptions and other auto-renewing services just as easily as they signed up.
The agency adopted the rule last October, and the rule went into effect Jan. 14. But enforcement doesn’t kick in until this coming Wednesday, May 14. The rule empowers the FTC to impose a penalty of $51,744 per violation, with a single transaction potentially racking up multiple violations, Snell & Wilmer said in a note to clients.