Subscription revolution: US introduces one-click cancellation rule
The US Federal Trade Commission has introduced a new rule making it easier to cancel subscriptions to various services. Companies are now required to provide customers with the ability to terminate services as easily as they can order them.
Making it easier to cancel subscriptions
New FTC requirements
The US Federal Trade Commission (FTC) has approved a new regulation requiring companies, including popular streaming services like Netflix, to provide a one-click option to unsubscribe from their products and services.
Ease of use
The resolution emphasizes that the process of terminating a subscription should be no more difficult than registering it. Lina Khan, chairwoman of the FTC, comments on the decision (as reported by Reuters), noting that the new rule is a response to a growing number of user complaints about the excessive difficulty of refusing services.
Consumer Protection
Khan emphasizes that companies should not be able to deceive customers into paying for unnecessary subscriptions. The new provision prohibits organizations whose customers have signed up through an app or website from offering cancellations only through chatbots or other agents. For customers who subscribe in person, the company must provide an opportunity to cancel by telephone or in writing.
Additional measures
The rule also requires obtaining the customer's prior consent to renew a subscription or switch from a free trial to a paid one. This applies to streaming services, shopping centers, fitness clubs and other similar organizations.
Precedents and lawsuits
Last year, the FTC filed a lawsuit against Amazon, accusing the company of misleading customers and automatically renewal of subscriptions. The complaint also noted that Amazon's website design "encouraged" users to sign up for Prime. Similar claims have been made against Adobe over "hidden" termination fees and a confusing cancellation process. The FTC said Adobe failed to provide customers with clear terms and conditions, including annual subscription terms and early termination penalties.
Glossary
- FTC (Federal Trade Commission) - US Federal Trade Commission, government agency , engaged in protecting consumer rights and monitoring compliance with antitrust laws.
- Netflix is an American entertainment company, a provider of films and TV series based on streaming media.
- Amazon is an American multinational technology company specializing in e-commerce, cloud computing, digital streaming and artificial intelligence.
- Adobe is an American multinational software development company.
- Prime is a paid service from Amazon that offers benefits including free shipping and streaming access.
Links
Hashtags
Save a link to this article
Discussion of the topic – Subscription revolution: US introduces one-click cancellation rule
The US FTC has adopted a new rule requiring companies to provide easy, one-click cancellation, making it as easy to cancel a service as it is to sign up for it.
Latest comments
8 comments
Write a comment
Your email address will not be published. Required fields are checked *
Marta
Finally! 👏 It was high time to do this. I've struggled so many times trying to cancel my Netflix subscription. Now it will be much easier.
Hans
I agree, Marta! This is a big step forward. I wonder how quickly companies will implement these changes? 🤔
Sophie
This is great news! I'm especially pleased that you will now need to obtain consent to extend your free trial. How many times have I forgotten about this and then paid... 😅
Carlos
Hans, I think companies will have to adapt quickly. The FTC is not kidding, judging by the lawsuits against Amazon and Adobe. I wonder how this will affect their income? 💰
Giovanni
This is all nonsense. Previously, people knew how to read the terms and conditions and monitor their subscriptions. Now what, do you have to lead everyone by the hand? I don't see any progress.
Marta
Giovanni, don't be such a grump! 😄 This is a real problem for many people. Simplifying the process is always good.
Andrzej
I'm wondering if this rule will apply to other countries? 🌍 It would be great if this became a global practice.
Olena
Andrzej, good question! I hope so. We also have problems with this in Ukraine. It would be great if our regulators followed the FTC's lead.