Experts say the measure is overdue.
The rule would also allow sellers to offer additional services when a consumer tries to cancel their enrollment.
But before making such pitches, sellers must first ask consumers whether they want to hear them.
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By making the process simpler for consumers, it will cut down on the number of erroneous charges.
Companies that violate the rule could face significant fines of $50,000 per violation.
The FTC said it would also be able to help consumers who have suffered from unfair subscription practices.
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According to the agency, many users need help with demanding and complex cancellation policies.
More Subscriptions Mean Big Bills
Businesses have increasingly turned to subscriptions as a way to increase income.
Revenue from subscriptionsgrew 300% between 2012 and 2018.
Of those surveyed, all said they didn’t know the total cost of all their subscriptions.
When asked to guess, the average was 3.4 times less than they truly paid.
The process of canceling subscriptions can be a confusing mess, Shaikh noted.
He said some platforms make it easy to stop recurring charges, while others involve multiple steps.
