The Federal Trade Commission is taking steps to make it easier for consumers to cancel their digital subscriptions.
The ministry announced Wednesday that it will soon introduce a “last-click cancellation rule,” requiring merchants to make it “as easy as a consumer can cancel a subscription.” It is said that it will be done.
Most of the final rule's provisions will become effective 180 days after publication in the Federal Register, the department said.
“Too often, companies make people jump through endless hoops just to cancel a subscription,” FTC Chair Lina Khan said in a statement. “The FTC's rules will eradicate these tricks and traps and save Americans time and money. No one should have to pay for services they no longer want.”
This new regulation is part of the FTC's ongoing review of negative option rules aimed at combating unfair or deceptive practices related to subscriptions, memberships, and other recurring payment programs in the digital economy. is.
The move comes as major media and technology companies such as Netflix, Disney and Warner Bros. Discovery look to ramp up their streaming-related businesses and compete with the number of users signing up for short-term subscriptions to streaming and digital services. is happening. Cancellations known as “churn rate”.
A recent Deloitte study found that the average U.S. household pays just over $60 a month for four streaming services, The Hill previously reported.
Media business watchdogs and government watchdogs have long said that accelerating trends in technology and media consolidation are likely to drive up subscription prices for news, sports and entertainment content and limit consumer choice. I've warned you.
“While negative option marketing programs are convenient for sellers and consumers, the FTC receives thousands of complaints each year regarding negative option and subscription practices,” the agency said, adding that the number of complaints the FTC receives He pointed out that the number has been steadily increasing year by year. For the past 5 years.
