Arlington, VA — The American Consumer Institute (ACI) has expressed strong concerns regarding the Federal Trade Commission’s (FTC) upcoming implementation of the “click to cancel” rule. According to ACI’s Logan Kolas, Director of Technology Policy, and Trey Price, Policy Analyst, this new regulation will create significant challenges for businesses and consumers alike, ultimately driving up costs and limiting consumer options.
Key Takeaways:
- Harm to Consumer Savings: The rule forces companies to allocate resources toward re-acquiring customers, limiting their ability to offer lower prices and customer retention deals.
- Increased Costs for Businesses: The rule introduces additional operational burdens, diverting resources away from innovation and driving up the cost of doing business.
- Negative Impact on Consumer Experience: While intended to protect consumers, the rule will actually prevent companies from offering better deals to happy customers, leading to higher prices and fewer savings opportunities for subscribers.
The American Consumer Institute urges the FTC to reconsider the “click to cancel” rule before it goes into effect in 180 days. This rule not only undermines consumer interests but also disrupts business efficiency and drives up prices. ACI encourages the FTC to simplify its own processes rather than impose regulations that harm the very consumers they seek to protect.
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