US Government Wants To Make It Easier To Cancel Subscriptions
«The proposed rule would require that companies make it as easy to cancel a subscription as it is to sign up for one.»
By Eddie Makuch on
The United State government's Federal Trade Commission has announced a new plan that, if implemented, could make it easier for people to cancel memberships to gyms, streaming services, and lots more. The provision is called «click to cancel,» and the idea is that it should be as easy to cancel a membership as it is to sign up for one. Right now, that's definitely not the case, as anyone who has ever tried to cancel a gym or news media subscription surely knows.
«The new click to cancel provision, along with other proposals, would go a long way to rescuing consumers from seemingly never-ending struggles to cancel unwanted subscription payment plans for everything from cosmetics to newspapers to gym memberships,» the FTC said in a news release.
FTC chair Lina Khan said, «The proposed rule would require that companies make it as easy to cancel a subscription as it is to sign up for one. The proposal would save consumers time and money, and businesses that continued to use subscription tricks and traps would be subject to stiff penalties.»
The FTC said it receives «thousands» of complaints each year about problematic business practices like forcing people to cancel their gym memberships in person or keeping people on hold with customer service for lengthy periods of time.
Here is a rundown of the proposed changes, as written by the FTC.
FTC Commissioner Christine S. Wilson issued a dissenting opinion on the measure.
«I appreciate staff's steadfast efforts to protect consumers from deceptive negative option practices. I might have supported a tailored rule to address the negative option
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