Viewpoints Explained: Why Is It Sometimes So Difficult To Cancel Subscriptions?

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Many companies make cancelling a subscription a tedious and mind-numbing process. We cover how the Federal Trade Commission is cracking down on these deceptive business practices.

These days there’s a subscription plan for almost everything. From gym memberships to streaming platforms to at-home meals, the list goes on and on. And let’s not forget the countless companies selling products like vitamins, razors, hair care and makeup through month-to-month models. If you were to guess, how many of these types of accounts do you have? Five? Ten? Maybe there’s one or two where you’re unsure of if you’re even still paying for it?

With so many subscriptions, it can be easy to lose track of when a free trial ends or if the price per month shoots up. In fact, most americans spend more on these accounts than they think. According to a 2022 survey by c & r research, the average consumer pays about two hundred and nineteen dollars per month on subscriptions.

And even when people try to get out of these contracts, it’s often not an easy process. Some gyms, for instance, require members to come in-person to cancel while other companies make you call and then jump through multiple layers of customer service. To make this process easier for consumers, the federal trade commission is now cracking down on businesses that purposely make things difficult or unclear. New mandates like the ‘click to cancel’ rule requires brands to make it as easy to cancel as it is to sign up. Another focus is on transparency. The FTC says customers should have access to all of the key terms of their contract and be alerted to any changes on their account like when a free trial period is up or when the price per month is increasing.