It May Soon Be Much Easier To Cancel Your Subscriptions (We Hope)
It’s not uncommon for some online services or memberships to make it exceedingly difficult for users to unsubscribe or quit. The prevailing business theory behind that was apparently meant to dissuade consumers from going through with that final step. Now, the Federal Trade Commission has announced a new rule that is meant to make it much easier for people to cancel those services.
The FTC’s Click To Cancel rule calls for sellers to streamline the process that lets customers end their subscriptions or enrollment. Whether that will work in practice remains to be seen, but it’s a positive step forward for those who have been calling for the change.
“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said Commission Chair Lina M. Khan in a statement. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”
Among other changes, the rule will prohibit sellers from “failing to provide a simple mechanism to cancel the negative option feature and immediately halt charges.” This means, for example, that if you subscribe to a streaming service, the streamer should allow you to unsubscribe by clicking a single button to prevent any further charges. The FTC notes that it receives thousands of complaints each year about this subject, and the rule is meant to finally address the issue.
Under FTC guidelines, the rule doesn’t go into effect until 180 days after it has been published in the Federal Register, and it may take some time before it’s obvious whether the change is working as intended.
