Power
Upset Man
(Illustration: CSA-Printstock / Getty)

FTC: Canceling your subscriptions just got easier

If youve ever tried to cancel a recurring subscription and found the process maddeningly difficult (which is usually by design), new rules are coming, and it should become a lot easier.

Today the Federal Trade Commission approved a final rule that aims to make canceling a subscription just as easy as it is to sign up for it in the first place.

The changes affect “negative option programs” that have a feature that “allows a seller to interpret a customer’s silence, or failure to take an affirmative action, as acceptance of an offer,” the new rule says. It takes effect in six months.

“Too often, businesses make people jump through endless hoops just to cancel a subscription. The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want,” FTC Chair Lina Khan said in a press release announcing the changes.

The FTC said that it received thousands of consumer complaints about sneaky subscription tactics, citing that the agency received nearly 70 complaints on the topic per day on average in 2024 alone. Over 16,000 comments were submitted to the FTC’s request for public comment on the proposed change.

Companies offering subscriptions will also be prevented from:

  • Misrepresenting any details of an offer

  • Failing to disclose the terms before your payment info is collected

  • Failing to obtain your informed consent before charging you

  • Failing to offer a way to cancel thats as easy as the sign-up was and immediately halts charges

In June, the FTC sued Adobe for making it really hard to cancel subscriptions to the company’s Creative Cloud software. In addition to making it hard to find the controls for cancellation, the FTC took issue with hefty cancellation fees that it says were not disclosed clearly to consumers. In an unredacted complaint filed in the case, Adobe executives said such fees were “a bit like heroin for Adobe.”

More Power

See all Power
power

GM climbs following upgrade, report that Trump administration seeks stake in its lithium mine partner

Shares of General Motors rose more than 2% in premarket trading Wednesday following an upgrade of the stock by UBS from neutral to buy. The firm also hiked its price target for GM by 45% to $81.

Also likely elevating GM was a Reuters report that the Trump administration is exploring taking a 10% stake in Lithium Americas, the automaker’s partner in a yet to open Thacker Pass lithium mine. Shares of Lithium Americas surged 68% in the premarket.

GM, which invested $625 million into the lithium mine last year, holds a 38% stake in the joint venture. The mine is expected to become the Western Hemispheres primary lithium source in 2028, when it’s slated to open, producing enough of the metal to make 800,000 electric vehicle batteries.

Prior to its plans for Lithium Americas, the Trump administration last month said it would take a 10% stake in Intel. In July, it announced a 15% stake in rare earths miner MP Materials.

News Reporter 1970s

Jimmy Kimmel’s suspension highlights Nexstar and Sinclair’s vast control over US airwaves

Nexstar and Sinclair control large swaths of US television stations. Nexstar’s planned merger could make their influence even greater.

power

Delta dips as the Trump administration orders the end of its joint venture with Aeromexico

Shares of Delta Air Lines ticked down on Tuesday morning following the Trump administration’s order that the airline dissolve its approximately 9-year-old joint venture with Aeromexcio by January 1, 2026.

Delta said it was disappointed in the decision, adding that the termination will “cause significant harm to U.S. jobs, communities and consumers traveling between the U.S. and Mexico.” CEO Ed Bastian previously said that the administration’s regulatory stance could be a “breath of fresh air” for the aviation industry.

The Biden administration tentatively decided last year to not renew the antitrust immunity agreement covering the joint venture. At the time, Delta said “$800 million in annual consumer benefits would evaporate” if the partnership were terminated.

Collaboration isn’t over between the two airlines: the Department of Transportation said Delta can maintain its 20% stake in the Mexican airline and the partnership can continue through “arms-length activities such as codesharing, marketing, and frequent flyer cooperation.”

power

The DOJ is suing Uber, alleging the company discriminates against passengers with disabilities

The Department of Justice has filed a lawsuit against Uber on Thursday, alleging that the company routinely and illegally discriminates against passengers with physical disabilities.

The lawsuit, filed in federal court in San Francisco, alleges that Uber’s drivers regularly refuse service to passengers with service animals and stowable wheelchairs. Some passengers are charged cleaning fees for service animals and cancellation fees after being refused a ride, the lawsuit alleges. According to the complaint, others are insulted or denied requests like sitting in the front seat due to mobility issues.

“Ubers discriminatory conduct has caused significant economic, emotional, and physical harm to individuals with disabilities,” the lawsuit reads.

A survey last year by the organization Guide Dogs for the Blind found that more than 83% of people who are blind or visually impaired said they’ve been denied ride-share service.

In a statement to Bloomberg, Uber disagreed with the lawsuit, saying it has a “zero-tolerance policy for confirmed service denials.”

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.