FTC rule seeks to make it easier to cancel subscriptions

[Craig Nigrelli]

THE FEDERAL TRADE COMMISSION IS BRINGING AWARENESS TO “CANCEL CULTURE” –

(Piers Morgan)

“I don’t know about you guys but I am sick of cancel culture.”

(Zoe Saldana)

“We’re living through times where we’re very quick to cancel people without even knowing their real name or their true background or their true stories.”

(Jon Stewart)

“There is no organized cancel culture conspiracy”

BUT NOT THE CANCEL CULTURE PIERCE MORGAN, ZOE SALDANA AND JON STEWART ARE TALKING ABOUT.

NO, THE FTC IS TARGETING THE CULTURE OF CANCELING SUBSCRIPTIONS AND THE BUSINESSES THAT MAKE IT DIFFICULT FOR CUSTOMERS

(SATURDAY NIGHT LIVE)

ON WEDNESDAY – THE FTC LAID OUT ITS FINAL RULE ON THE MATTER – REQUIRING RETAILERS, STREAMING SERVICES, GYMS AND OTHER SUBSCRIPTION-BASED SELLERS TO MAKE IT EASIER TO CLICK TO CANCEL – OR AS THE FTC SAYS — AS EASY AS IT WAS TO SIGN UP IN THE FIRST PLACE.

IT WAS IN MARCH 2023 – WHEN THE FTC PREVIEWED IT WOULD BE PROPOSING THE “CLICK TO CANCEL” RULE –

THAT ANNOUNCEMENT RESULTED IN 16 THOUSAND COMMENTS INCLUDING FROM CONSUMERS WHO HAD THEIR FRUSTRATIONS OVER NAVIGATING THROUGH COMPANIES’ CANCELLATION PROCESSES.

THE FTC SAYS IT RECEIVES APPROXIMATELY 70 COMPLAINTS A DAY ABOUT THESE TYPES OF PRACTICES – UP FROM 42 LAST YEAR.

THE COMMENTS – ESPECIALLY FROM RETAIL TRADE GROUPS – DID HOWEVER LEAD THE FTC TO MAKE SOME CHANGES TO ITS INITIAL RULE PROPOSALS – DROPPING A REQUIREMENT THAT BUSINESSES REMIND CONSUMERS EVERY YEAR ABOUT THEIR SUBSCRIPTIONS RENEWING – AND ANOTHER WHICH WOULD HAVE ALLOWED CONSUMERS LOOKING TO CANCEL SERVICE TO OPT OUT OF SEEING THE BUSINESS’ LAST DITCH OFFERS AND DISCOUNTS TRYING TO CHANGE THEIR MINDS.

THE RULE ALSO TAKES INTO ACCOUNT OF HOW A PERSON SIGNS UP FOR A SERVICE. IF SOMEONE SIGNS UP ONLINE – THEY WOULD BE ABLE TO CLICK TO CANCEL AND NOT HAVE TO DEAL WITH A CHATBOT OR AGENT.

AND IF THEY SIGN UP IN PERSON – THEY CAN STILL CANCEL ONLINE OR OVER THE PHONE.

IN A PRESS RELEASE WEDNESDAY – COMMISION CHAIR LINA KHAN SAID – QUOTE,

“TOO OFTEN, BUSINESSES MAKE PEOPLE JUMP THROUGH ENDLESS HOOPS JUST TO CANCEL A SUBSCRIPTION. THE FTC’S RULE WILL END THESE TRICKS AND TRAPS, SAVING AMERICANS TIME AND MONEY. NOBODY SHOULD BE STUCK PAYING FOR A SERVICE THEY NO LONGER WANT.”

SO WHEN WILL THE FTC’S ‘CLICK TO CANCEL’ RULE TAKE EFFECT? IN A STATEMENT TO STRAIGHT ARROW NEWS — THE FTC SAYS THE FINAL RULE WILL GO INTO EFFECT 180 DAYS AFTER BEING PUBLISHED IN THE FEDERAL REGISTER.

HOWEVER – THE FTC TELLS STRAIGHT ARROW NEWS IT DOES NOT KNOW YET WHEN THAT WILL HAPPEN.

FOR STRAIGHT ARROW NEWS, I’M CRAIG NIGRELLI.

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