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Schatz Statement On FTC Click-To-Cancel Rulemaking

WASHINGTON – U.S. Senator Brian Schatz (D- Hawai‘i) today released the following statement after the Federal Trade Commission (FTC) announced it is seeking public comment on updated rules for contracts with automatically recurring fees, including a proposed “click-to-cancel” provision and annual notification reminders that would help customers more easily get out of unwanted subscriptions.

“Free trials should be free, but instead some companies have used that model to lure and trap customers into subscriptions with costly monthly charges they never meant to make. That’s why I introduced a bill last Congress to stop those kinds of deceptive business practices. While this FTC action is a good step in the right direction, we also need to pass the Unsubscribe Act to provide consumers with more transparency and protections.”

Senator Schatz previously introduced the Unsubscribe Act, bipartisan legislation that would require companies to be more transparent about subscription-based business models and make it easier for consumers to cancel their subscriptions once their free or reduced price trial period has ended.