Gaming IndustryThe US FTC just dealt a deathblow to bad gyms and skeevy subscription services with a new ‘click to cancel’ ruleWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
Gaming IndustryThe US FTC just dealt a deathblow to bad gyms and skeevy subscription services with a new ‘click to cancel’ ruleWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
(Image credit: Bloomberg / Contributor (Getty Images))
In a win for the open internet, earlier this year the United States FCCrestored net neutrality, an unfortunately rare example of the US enacting the sorts of consumer rights protections that the EU hasrolledoutconsistentlyin recent years. Now the US Federal Trade Commission is following suit with a welcome regulation of its own—specifically what it calls “a set of common-sense revisions to the Negative Option Rule, now known as the Rule Concerning Recurring Subscriptions and Other Negative Option Programs.”
That’s convoluted government speak for ‘it’s going to be easier to unsubscribe from things now.’
“Negative option” refers to a form of recurring billing that has long been bad news for consumers—stealthy automatic renewals and free trials that hide pricey fees in the fine print. “Problematic negative option practices have remained a persistent source of consumer harm for decades, saddling shoppers with recurring payments for products and services they never intended to purchase or did not want to continue buying,” the FTC saidwhen it proposed this rule.
These days most of us maintain a tangled nest of monthly subscriptions—Spotify, Netflix, Game Pass, and so on and so forth—and it’s not always a guarantee that they’ll make unsubscribing quick or easy. Last year I paid up-front for a year’s access to unlimited screenings at Regal Cinemas, since I live within walking distance of a theater and seeing just a couple movies a month would cover the fee. When the year was nearly up I was pretty annoyed to discover I had to email a support address to end my subscription—there was no cancel button anywhere in the Regal app or on its website. I was evenmoreannoyed when the service auto-renewed on me several days early, almost as if snagging that extra month’s fee before people like me moved to end their subscription was a deliberate strategy.
That sort of practice would likely be in violation of the FTC’s new rule, which demands services “include a simple way for people to cancel.”
Some parts of the new regulation go into effect in 60 days, while others won’t land for 180 days. Hopefully it will mark a noticeable change in how easy it is to dump services (and gyms) that seem designed around the idea that we’ll keep giving them money forever if subscribing isjustenough of a pain in the ass.
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