What the Tech: Click to Cancel

CHARLOTTE, N.C. – The Federal Trade Commission (FTC) has introduced a new policy that aims to simplify the often frustrating process of canceling online subscriptions and services. Dubbed the “Click to Cancel” rule, this regulation will require companies to make it as easy to cancel a subscription
as it is to sign up for one.

Currently, many companies bury the cancellation option deep within account settings, making it difficult to find. Some even force customers to call customer service and endure lengthy hold times and persuasive sales pitches just to cancel. This can lead to unwanted charges and a sense of being trapped in unwanted subscriptions.

This is a welcomed relief for consumers who’ve been forced to call a company to cancel. Doesthis sound familiar?

You: “I’d like to cancel my subscription”
Company: I’m sorry to hear that. May I ask why?
“I just want to cancel”
“Okay, let me get you over to our retention department.”
5 minutes later:
“Hello, how can I help you?”
“I’d like to cancel.”
“I’m sorry to hear that, may I ask why”
“I just want to unsubscribe”
“I see, would you be interested in a 30% discount?”
“No…I want to cancel.”
“I see. Before I help you with that, I’d like for you to talk with my retention department
supervisor.”

The FTC said it received over 16,000 complaints from consumers who say it’s nearly impossible to cancel a subscription or service.

The new rule will change this by mandating that companies provide a clear and easily accessible “Click to Cancel” button in a prominent place, such as on the account management page or the subscription confirmation email.

The FTC believes this new requirement will save consumers time and money. By making it easier to cancel unwanted subscriptions, consumers will be less likely to continue paying for services they no longer use. This will also help to prevent the unpleasant surprise of unexpected charges on their credit card statements.

The new regulation will not take effect immediately. The FTC is giving companies 180 days to make the necessary changes to their websites and cancellation processes. In the meantime, consumers are encouraged to report any companies that do not comply with the new rule once it comes into effect.