A screen displays logos for streaming services. States are passing new laws to try to make it harder for companies to automatically renew subscriptions, sometimes at higher prices, without consumers’ knowledge or consent. (File/Chris McGrath/Getty Images)
When Tennessee state Rep. Bob Freeman, a Democrat, studied his cable and internet bill last year, he kept seeing recurring charges for app subscriptions he didn’t recognize. Turned out, his 14-year-old daughter had been signing up for subscriptions with introductory rates and never canceling when they rolled over to the full price.
“I would question her bills, and she said, ‘Oh, it’s only $1.99.’ Those were teaser rates,” he said in an interview. To actually cancel, he said, he had to send an email to the company for a follow-up phone call, during which the company representative would try to talk him out of it.
“It was clear it was not meant for convenience. … It was clear it was predatory,” he said.
That experience, plus dealing with his grandmother — who would sign up for apps at $2.99 a month that would then renew for $14 without her knowledge — persuaded him that a new law was needed to ensure greater transparency and consumer protection.