With the rise of subscription-based services, canceling them has been made almost impossible. Between confusing webpages and being required to cancel in person…
It feels like customers are forced to jump through endless hoops just to get rid of a service they no longer want.
But there may be hope yet…
Now, the government is cracking down on the difficulty of canceling subscription services.
New Rule For Canceling Subscriptions
Since before the pandemic, consumers have complained about the hassle of canceling subscription services. And now there’s a subscription service for everything, from streaming to food.
The problem is so widespread that it contributes to people forgetting how many services they’re actually subscribed to.
In a 2022 survey, respondents estimated that on average they were spending $86 per month on subscriptions…
IN REALITY, THE RESPONDENTS WERE SPENDING AN AVERAGE OF $219
About 42% of the respondents said they were still paying monthly for services they forgot about.
Clearly, there is some friction between subscriptions and the customers.
And what’s worse is that companies deliberately design subscriptions in a way that traps consumers in a service that is nearly impossible to escape from.
Many companies use “Dark Patterns” to sign customers up for different products without disclosing the cancellation policies. Dark patterns happen in two steps, first, companies will lure in customers by offering a desirable offer…
These offers come in the form of discounts or limited-time bonuses.
Next, the companies use “Negative Options” to keep customers from prematurely canceling subscriptions. Negative Options let companies interpret a customer’s silence and failure to cancel the subscription…
As an agreement to keep charging them for the service.
Once the customer is getting billed monthly for different products or services…
Getting out of those plans is insanely hard.
FTC Ruling
Customers often have to cancel these services in person…
Navigate convoluted web pages…
Stay on the hold for way too long trying to talk to the brand’s representatives.
Thankfully, the Federal Trade Commission finalized a new rule known as “Click-to-Cancel…”
THAT REQUIRES BUSINESSES TO MAKE CANCELING A SUBSCRIPTION AS EASY AS SIGNING UP FOR ONE.
Most businesses are against the new rule, saying it would lead customers who do enjoy the service to cancel accidentally and lead to customer dissatisfaction…
However, many in support of the new rule believe that making it easier to cancel a service would only create more brand trust and facilitate goodwill amongst customers.
There’s still some time before this new rule goes into effect. Until then it is still up to the consumer to get out of subscriptions…
Ultimately, the future is looking more hopeful for those canceling subscriptions.
Be Great,
GCTV Staff
Disclaimer: This content is intended to be used for educational and informational purposes only. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment or business decision. Investment, real estate, and business involve great risk and there is no guarantee of performance or results.We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.
