Mainers will find it easier to cancel subscriptions under a new state law — even as federal rules face roadblocks.
The Federal Trade Commission last year finalized new click-to-cancel rules. But this week the Eighth Circuit Court of Appeals blocked rollout, citing a procedural issue.
Under the state legislation, businesses have to provide clear information about renewals, and consumers have to consent to renewals and charges. And if a business offers a signup online, consumers must also be able to cancel the subscription online.
State Sen. Tim Nangle sponsored the bill.
"The whole idea behind this is to inform consumers about their subscriptions and making sure that they want to continue that subscription before being charged again," he said.
The law goes into effect in January, and applies to online software, mobile apps, gym memberships and more.
Nangle modeled Maine's legislation after the FTC rules. He was worried federal officials may not strictly enforce the rules in Maine, and wanted the Maine Attorney General's Office to have authority on the issue. Now, he's glad Maine will see the benefits regardless of federal rules.
"If this helps one person get out of a subscription that they didn't think they could get out of, then that's great," Nangle said.
He said once the law goes into effect, residents should reach out to the Attorney General's Office if they continue to have issues canceling subscriptions.
