FTC ‘Click to Cancel’ Rule: Consumer Protection Advances

The FTC’s final ‘Click to Cancel’ Rule aims to make it easier for consumers to cancel subscriptions and services. The positive is enhanced consumer protection and reduced ‘dark patterns’ in online sales. This could lead to increased customer satisfaction and trust. The negative for businesses is the potential for increased churn rates and the need to adapt their cancellation processes, which might incur compliance costs. Political factors are the FTC’s regulatory actions. External factors include evolving e-commerce practices and consumer rights movements. Advice for investors: Businesses relying on subscription models should be prepared for easier cancellations. Companies that focus on customer retention through value rather than difficult cancellation processes may be better positioned.