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The Federal Trade Commissionvoted Fridayto delay enforcement of the Negative Option Rule — known widely as the “ sink in - to - scratch ” rule requiring companies to make it as easy to offset a subscription as it was to sign up up .
The dominion , which wasfirst proposed in 2023 , took aim at businesses selling physical and digital subscription — everything from streaming services to gym memberships — through simple sign - up flows , only to have customers discover later that they have to go through a much more complex or time - consuming process to set off .
Under the Negative Option Rule , businesses would not be able to hale client to cancel subscriptions through a method different from the one they used to sign up — so if you signalize up with a few suction stop on a party ’s internet site , you should be capable cancel on their website , too . company are also require to provide relevant entropy about cancellation before they roll up customers ’ payment information .
accord to the FTC , the rule die into effecton January 19 , but enforcement of some provender was check until May 14 . Now the FTC is delaying enforcement by another 60 mean solar day , until July 14 .
“ Having conducted a sweet assessment of the burdens that forcing submission by this date would impose , the Commission has determined that the original deferral stop insufficiently accounted for the complexity of compliance , ” the FTC said in a statement .
The direction vote 3 - 0 to hold up enforcement . The FTC traditionally has five commissioner — three from the president ’s party and two from the opposing party — but President Donald Trumpfired the two Democratic commissionersin March . Those commissioners thensued Trump , argue their firing dishonor a Supreme Court case law that the president can not go off FTC commissioner without cause .
Despite the delay , the FTC say it will indeed start enforcement July 14 , when “ regulated entities must be in compliance . ”
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“ Of course , if that enforcement experience exposes problems with the Rule , the Commission is opened to amending the Rule to address any such problem , ” the FTC added .
