The idea is pretty simple. Subscription services have grown in recent years, with the epidemic driving sales to services such as streaming services and fitness brands like Peloton. The process to cancel many of their subscriptions has become one of the top complaints filed with the FTC in recent years.
Khan said that this is a semi-universal experience for consumers.
President Biden took to social media Thursday to express his support for the proposed rule, which has received the support of the proposed rule.
I support FTC's proposal to require companies to fix this. Khan said if you think about the number of consumers, you could be on the hook for fines of $50,000 per violation. A way for consumers to get money back if they don't want and can't cancel their subscriptions would be included in the rule.
Khan believes that the proposed rule will eventually become a reality, because it will still have to clear an open comment period and other hurdles before going into effect.
She said that we are just doing our job to protect consumers from unfair practices. We think we are a firm legal ground.