AUGUSTA, Ga. (WRDW/WAGT) – The Federal Trade Commission has introduced new policies aimed at simplifying the often frustrating process of canceling online subscriptions and services.
The regulation, known as the “click to cancel” rule, requires companies to make canceling a subscription as easy as signing up for one.
Many companies now have cancellation options buried deep in their account settings, making them difficult to find.
Some merchants force you to call customer service and endure long holds and persuasive sales pitches to cancel. This can cause you to incur unnecessary charges or feel trapped in unnecessary subscriptions.
This is a welcome relief for consumers who had to call the company to cancel.
Does this sound familiar?
You: “I would like to cancel my subscription.”
Company: “We are very sorry. May I ask why?”
“I would like to cancel anyway.”
“Okay. Now, I will direct you to the retention department.”
After 5 minutes:
“Hello, how can I help you?”
“I would like to cancel.”
“Excuse me, may I ask why?”
“I just want to unsubscribe”
“I see. Could you give me a 30% discount?”
“No, I want to cancel.”
“I see. Before I help you with that, I’d like you to speak to your manager in the retention department.”
The FTC said it has received more than 16,000 complaints from consumers who say it is nearly impossible to cancel subscriptions or services.
The new rules change this by requiring companies to provide a clear and easily accessible “click to cancel” button in a prominent location, such as on account management pages or subscription confirmation emails.
The FTC believes this new requirement will save consumers time and money.
By making it easy to cancel unwanted subscriptions, consumers are less likely to continue paying for services they no longer use. This will also help you avoid the unpleasant surprise of unexpected charges on your credit card statement.
The new regulations will not take effect immediately. The FTC gives companies 180 days to make necessary changes to their websites and cancellation processes.
In the meantime, consumers are encouraged to report businesses that do not comply once the new rules take effect.
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