As a longtime subscriber of various streaming platforms, I couldn’t be more thrilled about the FTC’s recent initiative to simplify the cancellation process for these services! Far too often, I’ve found myself lost in a digital labyrinth, trying to cancel an unwanted subscription, only to end up paying for another month anyway. It’s like playing a game of hide-and-seek with my hard-earned money, and I’m never the one hiding!
It’s about to get easier to cancel your Netflix (or Hulu or Max or Disney+) subscription.
As a gamer, I’m all about the freedom of choice. So, here’s some good news from the Federal Trade Commission: they’re making it easier for us to cancel our subscriptions and memberships! Now, companies have to make cancelling as simple as signing up. That means no more lengthy processes designed to keep us in unwanted subscriptions. They also need to ask for our consent before converting free trials or auto-renewals into paid memberships. This is a win for gamers like me who value flexibility and control over their gaming experiences!
In the next 180 days, a new rule will be implemented as streaming platforms strive to lower the number of users who sign up and then cancel their subscriptions. This phenomenon is known as customer churn. As subscriber retention has become crucial for these businesses, they’re now combining services into packages in an effort to minimize churn.
As a passionate supporter, I’d rephrase it like this: I’m all for the FTC’s efforts to combat misleading subscription tactics. Last year, they took Amazon to task for accusations of deceiving customers into signing up for Prime membership and making it difficult for them to cancel. The FTC alleged that Amazon used a confusing user interface designed to trick users into auto-renewing subscriptions, labeling the practice as manipulative and coercive. The lawsuit outlined a complex cancellation process requiring users to click through four pages, navigate six options, and make fifteen selections just to cancel their subscription.
Under the updated policy, Amazon now allows users an effortless method for cancelling their subscriptions using a single action or click.
Frequently, businesses require consumers to go through excessive steps to cancel their subscriptions, which can be frustrating,” stated Lina M. Khan, the FTC chair. “Our new rule aims to eliminate such deceptive practices and save consumers both time and resources. No one should be forced to continue paying for a service they no longer require.
Together with the Entertainment Software Association, the Motion Picture Association voiced disagreement towards certain aspects of the proposed rule. They stated that these modifications are problematic in multiple ways and their stringent conditions could potentially hinder the industry’s growth, while offering minimal protection to consumers from dishonest businesses who employ deceptive negative option marketing practices in the most extreme forms.
Several consumers wrote to the FTC supporting the changes.
California resident Mary Warner recently struggled to terminate her Spotify and Netflix subscriptions due to unforeseen financial troubles. It’s not hard to picture others finding themselves stuck with unwanted bills for several months because they lacked the necessary time, effort, stamina, or assertiveness to cancel. Regrettably, I myself ended up paying an additional month’s fee for both services, even after my initial attempt to cancel.
The rule will also bar companies from forcing consumers to call or chat with a live agent to cancel their subscriptions if they enrolled online. “When my daughter signed up for a ‘free trial’ of Netflix I had to make several phone calls to cancel,” wrote Georgia resident Arlene Anderson. “She signed up online, she should be able to cancel online!”
As a gamer, I’ve had my fair share of run-ins with companies that make cancelling subscriptions an unwanted adventure. One such company that’s been under fire for this is SiriusXM. New York has even taken them to court, claiming they train their employees to use a six-step script on subscribers, which involves pushing multiple retention offers and stubbornly refusing cancellation until the customer gives up.
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2024-10-16 20:55