Additional Coverage:
Canceling Subscriptions Made Easier
Tired of paying for unwanted subscriptions? Relief is on the horizon. A new rule from the Federal Trade Commission (FTC) will make it easier to cancel subscriptions and memberships.
“Click to Cancel” Rule
Businesses must now obtain your consent before signing you up for subscriptions or free trials that automatically convert to paid memberships. Canceling these services must be as easy as signing up, with no sneaky tricks or obstacles.
President Biden’s Crackdown on “Junk Fees”
This rule is part of President Biden’s effort to curb excessive fees. Vice President Harris highlighted the proposed “click to cancel” rule earlier this year.
Consumer Complaints Surge
The FTC receives an average of 70 complaints per day about difficulties canceling subscriptions. Businesses often make it intentionally difficult to cancel, leading to unwanted monthly charges.
Industry Pushback
Trade groups argue that the new rule burdens businesses and is unnecessary. However, consumer advocates disagree.
Consumer Advocates Applaud Rule
Consumer advocates say the rule benefits both consumers and businesses. It ensures that consumers only pay for services they want and that businesses provide better customer service.
More Protections Needed
While the rule is a step forward, consumer advocates want additional protections, such as reminders before automatic renewals and a ban on strong-arm tactics that discourage cancellation.