Click-to-Cancel rule makes it easier for consumers to cancel subscriptions, memberships
INDIANAPOLIS (WISH) — With a click of a button, signing up for a membership or a subscription is easy, but cancellation can be complicated.
Now, a new Federal Trade Commission rule called “Click-to-Cancel” allows for consumers to cancel subscriptions and memberships easily. If you register online, you can cancel online. If you sign up in-person, you can also cancel online or over the phone.
The federal government received nearly 16,000 comments over this issue. The goal is for more transparency to prevent sellers from leaving out necessary information. They want to stop people who are getting billed when they didn’t agree to pay, and target sellers who make it hard or impossible to cancel.
“Right now, I’m having trouble cancelling my Audible subscription because it keeps renewing and I have credits I haven’t used yet,” said Abigail Alvarez. “There’s so many steps. I haven’t done it yet.”
Logan Barker said he had trouble with his TV satellite subscription.
“They always seem to make it hard,” Barker said. “You have to call it in, talk to someone to cancel. It’s not as easy as going online and fixing it.”
Megan Liu had trouble with Disney+.
“I just remember I was cancelling it, and it took me a week to find out how to cancel, and I ended up having to pay another month,” Liu said.
All the people News 8 spoke to said this new rule can make a difference.
“I think it’ll be convenient,” Alvarez said. “I’m a big subscription subscribe.”
“I think it sounds great, and it could be a good way to save some time,” Liu said.
Not only will it save time, but also money. The rule will apply to retailers, gyms, and other businesses. With the new rule, businesses cannot charge without informing customers on how to cancel.
“They can see me, email me, text, whatever is easiest for them, and I cancel immediately,” said Eric Board, owner of Naptown Brazilian Jiu-jitsu.
Board makes cancelling easy. Membership is on month-to-month basis, and customers can cancel anytime.
“In fairness to the customer, if they don’t like the product or service they’re receiving, there’s no obligation to continue,” Board said.
And that strategy of an easy cancellation seems to work. They have over 150 students.
The new FTC rule will go into effect about seven months from now.