NACA in the News: Deluzio, Sherman, Magaziner Introduce ‘Click to Cancel Act’

WASHINGTON, D.C — Today, Congressman Chris Deluzio (PA-17), along with Congressman Brad Sherman (CA-32) and Congressman Seth Magaziner (RI-2), introduced the Click to Cancel Act, legislation to take on predatory subscription and auto-renewal tactics harassing the American people.

The bill enshrines into law critical rules that the Federal Trade Commission (FTC) advanced to address increasing reports of consumers losing time and money from intentionally difficult subscription cancellation processes. The FTC finalized this rule, referred to as “Click to Cancel,” after an extensive rulemaking process grounded in public input. Unfortunately, just days before it was to take effect, the Eighth Circuit Court vacated the rule over procedural technicalities. As a result, necessary consumer protections are stalled, while misleading cancellation practices continue.

“Subscriptions are Corporate America’s new favorite way to try and rip people off, and it’s driving people crazy that they can’t easily cancel,” said Congressman Deluzio. “Cancelling subscriptions should not be full of tricks and traps that waste hard-earned time and money—cancelling should be just as easy as signing up. That’s what the ‘Click to Cancel’ policy from former FTC Chair Lina Khan was all about, and I’m proud to co-lead the bill in the House of Representatives to make it law. Congress should act now to pass this and save people money.”

“This legislation would ensure that auto-renew subscription services are transparent, easy to cancel, and required to gain explicit consent from the consumer before they are charged for services,” Congressman Sherman said.

“Too many people are stuck paying for monthly subscriptions they don’t want, and that companies make nearly impossible to cancel. I am proud to lead legislation to make it easier to cancel recurring payments and put power back in the hands of everyday people who work hard for their money,” Congressman Magaziner said.

“Consumers shouldn’t have to jump through hoops to cancel a subscription they signed up for with a single click. Congressman Sherman, Magaziner, and Deluzio’s ‘Click-to-Cancel’ bill offers a simple, commonsense solution to a widespread problem: companies trapping people in costly subscriptions with deceptive and deliberately difficult cancellation processes,” said J.B. Branch, Big Tech Accountability Advocate at Public Citizen. “Americans are tired of being scammed by subscription services that bank on forgetfulness and frustration. Whether it’s a gym membership, streaming service, or online app, it should be just as easy to cancel as it was to sign up. We applaud this effort to codify the click to cancel protections into law and urge Congress to move swiftly to protect consumers from these predatory practices.”

“It’s a shame that a federal court nullified the FTC’s click to cancel rule, which protected consumers from unfair and deceptive subscription traps. We appreciate Reps. Sherman, Magaziner, and Deluzio taking immediate action with his bill to turn the commonsense rule into law.” Christine Hines, Senior Policy Director at the National Association of Consumer Advocates

“The Click to Cancel Rule is simple, commonsense policy that’s long overdue. Passing this bill could be the easiest vote for members of Congress to cast this year, and the most popular too.” John Breyault, National Consumers League Vice President of Public Policy, Telecommunications, and Fraud

“Consumers should not have to wrestle with companies—or uncover a hidden escape hatch— to cancel a subscription,” said Ruth Susswein, Director of Consumer Protection at Consumer Action. “Thankfully Rep. Brad Sherman, Rep. Seth Magaziner, and Rep. Chris Deluzio support consumers’ basic need to say “No” to unwanted contracts by making it the law of the land.”

Specifically, the Click to Cancel Act would codify the FTC Negative Option rule into statute and require companies to:

1. Provide a simple, direct mechanism to cancel a subscription and immediately stop charges.
2. Obtain clear and informed consumer consent before enrolling anyone in an auto-renewal program.
3. Clearly disclose all material terms before collecting any billing information.

Senator Ruben Gallego (D-AZ) introduced companion legislation in the Senate.

“Too many companies are relying on shady fine print and confusing cancellation processes to lock customers into charges they never agreed to. They’re counting on customers to forget, give up, or get stuck in the fine print so they can keep charging their card every month,” said Senator Gallego. “This bill puts an end to that scam by giving the FTC’s Click-to-Cancel rule the full force of law so that people can cancel subscriptions just as easily as they sign up for them. It’s a commonsense fix that will save families money and stop businesses from trapping customers in subscriptions they don’t want, can’t use, or never meant to keep.”

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