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FTC 'Click to Cancel' Rule Aims to Make Canceling Subscriptions Easier
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I imagine this will lead to companies pushing long-term (e.g., 12 months) subscriptions more. If unsubscribing becomes "easier", locking in customers longer upfront becomes more important.
Gosh, Amazon is the worst with this when it comes to Prime
They ask you a few times if you just want to pause things instead of cancel
It's so infuriating
That and the fact that there are companies out there that make you call to cancel are worse, as they'll try to rope you in with a better deal to stay on
It should, but who knows if they'll actually comply
My guess it that it will and if they don't comply they'll be punished in some form (hopefully!)
The thing with SXM though is that aisde from the fact that it still comes as a 3 month free trial in any new vehicle, and alongside that, they have it available via streaming as well so you can access it through a computer, phone or tablet, or on your phone in the car via Apple CarPlay or Android Auto
While I don't use it a lot for listening to music, as a sports nut, I use it a ton to listen to my hometown baseball team (Milwaukee Brewers) when I'm not in range of any stations in their radio network and also same with my football team (Green Bay Packers)
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Certain services can be very difficult, and that makes a baseline policy make sense.
This includes everything, including services that aren't primarily on the internet like gyms, utilities, cell service, ISPs, satellite internet/radio/tv, in-vehicle subscriptions, whatever.
Not sure if it is still like that, but the NYT required calling to cancel even if you signed up online. SiriusXM still does.
Great change, but I think a lot of this is going to fall back on Apple to change their policies. They don't even let devs link to their webpage to subscribe outside of the App Store, and if devs are going to be forced to only do subs through the App Store, then we can probably expect prices to go up across the board.
I do wish services would at least turn auto-renew off by default. It's such a scummy "gotcha" way of taking money.
I do wish services would at least turn auto-renew off by default. It's such a scummy "gotcha" way of taking money.
It depends:
”The new rule will require businesses to make cancellation processes as straightforward as sign-up procedures, and companies will be prohibited from forcing customers to use chatbots or speak with agents to cancel subscriptions that were originally initiated online or through an app. For memberships started in person, businesses must offer cancellation options by phone or online.”
I’m presuming you can cancel SXM with a click if you subscribed via the app or perhaps via their website. But if you began your subscription with a phone call a number of years ago, you may still have to cancel that way.
This should be made a federal law.
The Federal Trade Commission (FTC) has announced a final "click to cancel" rule that aims to simplify the process of ending subscriptions and memberships for US consumers.
The new rule will require businesses to make cancellation processes as straightforward as sign-up procedures, and companies will be prohibited from forcing customers to use chatbots or speak with agents to cancel subscriptions that were originally initiated online or through an app. For memberships started in person, businesses must offer cancellation options by phone or online.
In a statement accompanying the Commission's press release, FTC Chair Lina M. Khan said: "Too often, businesses make people jump through endless hoops just to cancel a subscription. 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."
The rule will apply to almost all negative option programs across all media. It also requires sellers to provide clear information before obtaining billing details and to secure informed consent for negative option features prior to charging customers.
The move follows a significant increase in consumer complaints about subscription practices, according to the FTC. In 2024, the government agency received an average of nearly 70 complaints per day related to negative option and recurring subscription issues, up from 42 per day in 2021.
The Commission voted 3-2 to approve the final rule, with two Republican commissioners opposing it. Some initially proposed measures were dropped, including requirements for businesses to send annual reminders about recurring charges. The new regulation is set to take effect 180 days after publication in the Federal Register.
The regulation is part of the FTC's efforts to modernize its 1973 Negative Option Rule and address unfair practices, and follows recent legal actions against major companies like Amazon and Adobe over their subscription practices.
Article Link: FTC 'Click to Cancel' Rule Aims to Make Canceling Subscriptions Easier
Just call your credit card company and tell them to decline any further charges from the gym.
They can turn you over to debt collections for non-payment as you still have a contract.
In short, doing that can trash your credit.
it's welcome although I feel like most are realizing it isn't worth hassling people. They are going to cancel anyway, you have to pay people to man the phone lines and you make people reluctant to sign up in the first place. Plus one can go thru the credit card company and challenge the charge as a potential work around
3-4 years ago I had to call the WSJ to cancel and of course I stay because they offer to continue my lower rate. Not sure if that is still the case or not with them. It looks like it isn't.
3-4 years ago I had to call the WSJ to cancel and of course I stay because they offer to continue my lower rate. Not sure if that is still the case or not with them. It looks like it isn't.
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Oh yeah they're horrible about that. They'll keep you on the phone for 20 minutes.
Thank you, I hadn't the time to really read the ruling yet. This will help a lot.
I cancelled mine last year and it was at least a 20 minute phone call of being passed around and various offers. If they've already improved this since, then that's great.
As it currently stands, one has to call SiriusXM to cancel, even if one subscribed via the website or app.
My most challenging over the years Dish Network. Not a big fan of Government intervention. When businesses behave badly impacting large numbers of customers, they get what they deserve. Do not want regulation, behave.
This should extend to Gym memberships as well.
The Federal Trade Commission (FTC) has announced a final "click to cancel" rule that aims to simplify the process of ending subscriptions and memberships for US consumers.
The new rule will require businesses to make cancellation processes as straightforward as sign-up procedures, and companies will be prohibited from forcing customers to use chatbots or speak with agents to cancel subscriptions that were originally initiated online or through an app. For memberships started in person, businesses must offer cancellation options by phone or online.
In a statement accompanying the Commission's press release, FTC Chair Lina M. Khan said: "Too often, businesses make people jump through endless hoops just to cancel a subscription. 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."
The rule will apply to almost all negative option programs across all media. It also requires sellers to provide clear information before obtaining billing details and to secure informed consent for negative option features prior to charging customers.
The move follows a significant increase in consumer complaints about subscription practices, according to the FTC. In 2024, the government agency received an average of nearly 70 complaints per day related to negative option and recurring subscription issues, up from 42 per day in 2021.
The Commission voted 3-2 to approve the final rule, with two Republican commissioners opposing it. Some initially proposed measures were dropped, including requirements for businesses to send annual reminders about recurring charges. The new regulation is set to take effect 180 days after publication in the Federal Register.
The regulation is part of the FTC's efforts to modernize its 1973 Negative Option Rule and address unfair practices, and follows recent legal actions against major companies like Amazon and Adobe over their subscription practices.
Article Link: FTC 'Click to Cancel' Rule Aims to Make Canceling Subscriptions Easier