BALTIMORE — A new Federal Trade Commission rule, effective April 13, 2025, will make it easier for consumers to cancel recurring subscriptions and memberships online, Maryland Attorney General Anthony G. Brown announced in a consumer alert. Dubbed the “Click-to-Cancel” rule, it requires businesses to provide a straightforward online cancellation process, eliminating complex hurdles like mandatory phone calls or confusing navigation.
The rule addresses widespread complaints about deceptive auto-renewal practices, ensuring companies disclose terms clearly before charging and provide reminders before free trials end. Attorney General Brown supported updates to an existing FTC rule in June 2023, which led to the creation of this consumer-friendly policy. “The digital world we live in makes it easier than ever for businesses to sign up consumers for their products and services,” Brown noted in the alert, highlighting how the rule counters practices that obscure monitoring or canceling subscriptions.
Under the new regulation, businesses must offer a cancellation process as simple as the signup, accessible with a few clicks. Companies are also barred from imposing hidden fees or misleading offers and must clarify when trial periods transition to paid subscriptions. The FTC estimates that such deceptive practices cost consumers billions annually, with subscription services often exploiting complex cancellation processes.
Brown’s alert emphasizes the rule’s role in saving consumers time and money. Maryland’s Office of the Attorney General has prioritized consumer protection, with Brown advocating for transparency in digital transactions since taking office. The rule applies to a wide range of services, from streaming platforms to gym memberships, reflecting the growing prevalence of subscription-based models, which generated over $500 billion globally in 2024, according to industry reports.
Consumers can access more details on the rule via the FTC’s official guidance. The regulation is expected to set a national standard for fair practices, aligning with efforts by state attorneys general to curb predatory billing. Maryland residents facing issues with cancellations can contact the Attorney General’s Consumer Protection Division for assistance.
The rule’s implementation comes as subscription services face scrutiny for “dark pattern” tactics—design choices that manipulate users into unintended purchases, a focus of recent FTC enforcement actions. By mandating transparency and simplicity, the Click-to-Cancel rule aims to restore consumer trust in online commerce.
