The agency is seeking to establish a simple, click-to-cancel option for subscriptions, the Wall Street Journal reported, rather than the complicated, and as the FTC argued, predatory, ways that some companies use to attempt to confuse consumers to continue buying subscriptions.“Companies should not be able to manipulate consumers into paying for subscriptions that they don’t want,” FTC Chairwoman Lina Khan said, the Verge reported. “We get countless complaints about this.
Companies have increasingly turned to subscriptions as a way to boost revenue. Revenue from subscriptions grew 300% between 2012 and 2018. The COVID-19 pandemic caused another boom in subscription popularity, which companies have continued to ride, even as other consumer patterns have reverted to pre-pandemic levels.
A 2016 survey from Hiatus found that 70% of respondents continued paying for unwanted subscriptions because they forgot to cancel before the automatic renewal point. It is this topic specifically that the FTC is looking to tackle.
FTC Where have we seen this before?
FTC Small hat
FTC good on 'em. a lot of companies make it a real pain to leave.
FTC When did Mayim Bialik become FTC Commissioner?
FTC antitrust enforcement has been the best part of the Biden Whitehouse
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