The power to buy things and subscribe for memberships, all online, is a major point of convenience for all of us in our daily lives. However, in the instances where you might decide that you don’t need a certain subscription or membership, all that convenience flies out the window in the quest for cancelation.
Fortunately for all of us as consumers, the US Federal Trade Commission (FTC) has just agreed to implement the “Click to Cancel” rule, which will force companies and businesses to make cancelations just as easy as signing up in the first place.
Signed Up Online Or In Person? Businesses Will Need To Make Cancelations Take Just a Few Clicks
At a point during my history with Amazon Prime, I decided I didn’t need to lose $15 every month, especially as I wasn’t using Amazon enough. When I tried to cancel, I had to go through like three different pages trying to make me rethink my decision. I had the same trouble with LinkedIn Premium too. However, that’s even the mild end of the spectrum.
In many cases, such as when trying to cancel your account with a mobile carrier or a membership with a gym, you might find yourself on a call for hours or talking with chatbots that are incredibly stubborn and will do almost anything to stop you from canceling your account.
Thankfully, no matter what flavor your ordeal is when trying to cancel a subscription, the FTC has just approved the “click to cancel” rule. Businesses will no longer be able to have chatbots or agents as the sole route to cancel a subscription if you signed up using an app or website. And, if you signed up in person, they have to give you the option to cancel over a phone call or online.
These companies always make signing up incredibly easy—they love taking your money, but they hate losing out on it. This new rule makes life so much easier, as it should be. However, keep in mind that it’ll take about six months to come into effect.
The New Rule Will Also Tackle Other Sleazy Subscription Tactics
Fortunately, that’s not the only annoying tactic that the FTC will be putting to bed. Do you know how companies love offering free trials? There are two reasons for that. One is to actually let you use the service and hopefully see its value, and the other is hoping that you forget and your free trial turns into a paid membership.
Well, it is beautiful news now that these businesses will be forced to get consent from customers before switching a free trial to a paid tier. They’ll also have to get consent before a subscription or membership is renewed.
Businesses certainly won’t like that some of their less-than-right sources of income will be plugged up. Amazon and Adobe have already been given some legal flak for some of their practices revolving around subscriptions. But at the end of the day, it is much better for the consumers. And we should always be on the side of the consumers.
