New FTC proposal makes it easier to cancel subscriptions

The Federal Trade Commission (FTC) has proposed a new bill that aims to make it much easier for customers to cancel their subscriptions. The bill is dubbed “Click to Cancel” and requires companies to design a hassle-free process for ditching subscriptions.

No company wants to lose touch with its customers, and they use different methods to keep customers hooked, including sending newsletters and cold calling. While receiving the latest discounts in your inbox seems tempting, sometimes the inbox is flooded with tons of emails from various companies wanting to sell you something. To cancel a subscription, you’re often required to provide the company with feedback on why you’re leaving. So agencies also asks you to cancel subscription via telephone or in person, which would turn cancelation into a headache.

FTC wants customers to ditch their subscriptions with a single click

The Federal Trade Commission now wants customers to be only one click away from unsubscribing. The “Click to Cancel” proposal allows customers to cancel their subscriptions online rather than doing so by calling the company or doing it in person.

FTC chairman Lina Khan says the agency receives complaints about gyms that ask people to cancel subscription via telephone or in person. The sales representatives also keep customers on the line to convince them to stay.

“These companies are betting that customers will be too impatient, busy, or confused to jump through every hoop,” Khan said. FTC also says thousands of consumers annually complain about complicated cancellation policies and automatic subscription renewals that cost them money.

As per the ruling, companies can inform customers about other offers, but they should get permission first. Additionally, auto-renewing subscriptions are forbidden, and companies must send customers annual reminders.

Germany already approved such a bill that allowed customers to cancel subscriptions through an online form, even when they’re not logged in to the website.

The bill is still in the early stages and has a long way ahead to become law in the US. Of course, companies that sell subscriptions will certainly oppose the deal as it puts their monetization in danger. Commissioner Christine Wilson also voted against the bill, alleging it’s written too broadly.