Canceling Free Trials and Subscriptions Might Get Easier

Do you feel like canceling free trials and subscriptions can be a complicated process that makes you jump through hoops? Well, the Federal Trade Commission (FTC) wants to change that.

On Thursday, the FTC announced a proposed rule change that applies to digital and physical subscriptions called “click to cancel”. According to CNN, “The FTC regulation could hit some of America’s biggest retailers and online platforms and a huge range of smaller businesses. It would affect millions of consumers in virtually every aspect of their lives, as subscription-based goods and services have become commonplace in industries as varied as music distribution, video gaming and pet care.”

The rule change would prohibit companies from making the process of  canceling subscriptions difficult for customers. CNN explained it this way, “the rule change would prohibit companies from trying to retain customers through deceptive or burdensome tactics intended to stymie or delay them from quitting a subscription, such as by making customers mail in paperwork to cancel a subscription they initially signed up for online.” Violations can potentially carry fines of tens of thousands of dollars.

The proposal will also require companies to ask consumers if they want to hear about other offers before pitching them during the cancellation process as well as providing consumers with reminders before automatically renewing their subscriptions.

The FTC explained that the rule would not be claiming legal authority but would “allow regulators to enforce against deceptive practices related to subscription cancellations without having to litigate each violation in a court,” per CNN.