New Rule Makes it Easy to Cancel
In a new rule released yesterday, the Federal Trade Commission requires sellers to make it as easy to cancel a subscription to a gym or a service as it is to sign up for one. In a statement, FTC chair Lina Khan explained the reasoning behind the “click-to-cancel” rule: “Too often, businesses make people jump through endless hoops just to cancel a subscription,” she said. “Nobody should be stuck paying for a service they no longer want.” Most of the new requirements won’t take effect for about six months, the stock price of Planet Fitness fell 8% after the announcement.
