Subscribed Online? You'll Soon Be Able To Cancel Online, Too, FTC Says.

[BumRushDaShow]

Source: Huff Post

Oct 16, 2024, 03:12 PM EDT


Consumers who dread the hassle of trying to cancel a subscription or membership they signed up for online will soon see some relief under a Federal Trade Commission rule finalized Wednesday. Once the so-called click-to-cancel rule goes into effect, businesses will be required to offer ways of canceling services that are as fast and easy as the way a customer signed up, the FTC said.

FTC Chair Lina Khan said businesses often make consumers “jump through endless hoops” to cancel subscriptions, including those with recurring charges. “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,” Khan said. The commission voted 3-2 in favor of adopting the rule, formally known as the “negative option” rule, where a customer’s failure to act or silence is interpreted as agreement.

It would take effect six months after it is published in the government’s daily compendium of public notices, the Federal Register. The rule would also compel sellers to provide information that is truthful, clear and easy to find; require that consumers know and businesses be able to show they know what they are signing up for; and allow violators to be fined.

Subscription-based products have been growing for years. In April, Zuora Inc., a company that helps monetize subscriptions, said companies in its Subscription Economy Index had grown more than three times faster than companies in the Standard & Poor’s 500 stock index over the past 12 years.


Read more: https://www.huffpost.com/entry/ftc-makes-it-easier-to-cancel-online-subscriptions-recurring-charges_n_670fff90e4b0907fa507d558

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Link to FCC PRESS RELEASE - Federal Trade Commission Announces Final “Click-to-Cancel” Rule Making It Easier for Consumers to End Recurring Subscriptions and Memberships

[ThoughtCriminal]

1. Some other actions are needed

Tens of millions had their Social Security numbers stolen, along with dates of birth, current and previous addresses, phone numbers and email addresses.

The AT&T data breach is one of many.

While corporations claim they need to request your SSN number to check customer credit for services ( a questionable requirement), there is absolutely no justification for retaining that data once the credit has been approved. It sat there vulnerable without the knowledge and consent of the customer.

The GOP and GOP appointees are committed to blocking consumer protection and most voters are sadly unaware of this.

[ShazzieB]

3. Those are very important but completely separate issues, imo.

[yesphan]

2. Good!

I subscribed to Peacock so I could watch the Olympics live. Now I can't get off and they debit my account every month.

[ShazzieB]

4. This is great news!

Our household income has recently shrunk due to my husband's retirement, and I've been canceling a lot of subscriptions that I rarely use to save money. I didn't realize how hard some of those companies would make it to cancel something until I really needed to do it! I've found that even if there is a way to cancel online, they do their best to make it hard to find. SO GLAD to hear this is going to get fixed.

I've also learned my lesson about keeping a record of every paid subscription and the auto renewal dates. I'm out a bunch of money due to things automatically renewing before I had a chance to cancel.

I'm sure autorenewal is a great boon to the companies that sell these online subscriptions, and it can be a welcome convenience to subscribers in many cases. But it's the bane of my existence right now!